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Pound rallies against dollar after hitting 24-year low
Jim Armitage22 Jan 2009
THE pound staged a small rally today, but investors remained extremely bleak in their forecasts for the currency.
Against the dollar, it recovered by 1.18 cents but, at $1.3868, still remained well below the psychologically important $1.40 mark.
Yesterday it fell to its lowest levels since 1985, when Ronald Reagan's economic boom triggered an unprecedented surge in the dollar. This time, the pound's plight is due to the weakness of the British economy, which investors fear is set to worsen.
Adam Carr, senior economist at currency brokers ICAP, said today: "I'd dump sterling. The bad news out of European banks hasn't finished yet."
The pound slipped slightly against the euro at ¤1.065, but fell towards record lows against the Japanese yen.
The pound has fallen more than 3 per cent this week against the dollar and euro. Figures out tomorrow are expected to show the British economy contracted by 1.2 per cent during last October, November and December.
Reader views (2)
Ray King - I would seriously advise going to see a counsellor, or at least a GP if you're feeling that depressed.
Count your blessings - you still have savings, you still have a house, presumably you live across two countries because you have a family - in which case you still have a family.
If you have a brain, willpower and motivation you will survive this situation. Don't waste time blaming others, think about what you can do to solve your own situation.
If more poeple did that, rather than rely on alternately blaming or being supported by others, maybe we wouldn't be in the situation we are in.
- Liberal And Proud, London, UK, 23/01/2009 10:46
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The complete loss of interest on my meagre savings, in addition to the drastic collapse of the pound has left me in a desolate position.Add to this the house-price fall, and the difficulty of selling a property, and there seems to be no way out. I wonder if I will still be alive in a few months time.Many others must be even worse off. Thank you so much, Bankers of Britain. Thank you, so much, Politicians of Britain.
- Ray King, kassel germany and wood green london, 22/01/2009 17:31
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