Tuesday, October 13, 2009
Pound continues its descent on Deflation fears
The pound continued its decline against other major currencies this morning as fears that inflation has tumbled further below target weighed. Dipping to levels not seen for over half a year, sterling hit a low against the euro of â‚¬1.065, down around a third of a cent from opening levels, marking its lowest ebb since late March against the single European currency. It also slid against the dollar in early trading, back under the $1.58 level at $1.5738 at its lowest point. The currency had already taken a hit yesterday after the government announced it was selling off a number of assets - including the country's student loan book and the Dartford Tunnel - and today the trend continued as investors fretted over the impending inflation data.