Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Competing narratives in Malaysia Airlines disaster coverage

Read more

AFRICA NEWS

Kenya : Police arrest 8 over Mombasa rampage

Read more

FOCUS

Overfishing and the global appetite for bluefin tuna: can Tokyo turn the tide?

Read more

MEDIAWATCH

Too many graphic images from Gaza ?

Read more

FASHION

Who's next in Paris, an event with international ready-to-wear and fashion accessories collections

Read more

ENCORE!

Tunisia's Carthage International Festival turns 50

Read more

THE OBSERVERS

Muslims and Christians clean up Bangui, and violence spirals out of control in Algeria's Gardaia

Read more

IN THE PAPERS

Is there such thing as 'telegenic' victims of war?

Read more

IN THE PAPERS

2014-07-22 07:21 IN THE FRENCH PRESS

Read more

  • Israel hits targets in Gaza despite diplomatic efforts for ceasefire

    Read more

  • Flight MH17 shot down ‘by mistake', US intelligence indicates

    Read more

  • Defying UK, France to proceed with sale of warship to Russia

    Read more

  • Conflicting rulings by two US courts cast shadow on future of Obamacare

    Read more

  • Video: Lebanon fears fallout from regional turmoil

    Read more

  • Widodo wins Indonesian presidential election

    Read more

  • US, European airlines suspend flights to Tel Aviv over Israel-Gaza conflict

    Read more

  • Australian veteran Rogers claims 16th stage of Tour de France

    Read more

  • France gives go-ahead to pro-Palestinian Paris rally

    Read more

  • French Jews mourn French-Israeli soldier killed in Gaza

    Read more

  • PSG punished by UEFA for abuse of disabled Chelsea fans

    Read more

  • Colombia's Rodriguez signs '€80m' contract with Real Madrid

    Read more

  • Children killed in minibus crash in eastern France

    Read more

  • A call for harmony in riot-hit ‘Little Jerusalem’ Paris suburb

    Read more

Sterling slides to two-year low against dollar

Latest update : 2008-08-15

The British pound fell to 1.8512 dollars, its lowest point since July 2006. The Bank of England is expected to cut interest rates to bolster economic growth. The slump in British currency is the latest indication of a gloomy global economic horizon.

The British pound hit a two-year low point against the dollar on Friday as dealers predicted interest rate cuts from the Bank of England to combat flagging economic growth, analysts said.

Sterling slumped to 1.8512 dollars -- the lowest point since July 26, 2006. It later Friday stood at 1.8530, from 1.8677 in New York on Thursday.

The pound has shed more than 12 percent in value since hitting a 26-year high of 2.1161 dollars on November 9.

The British currency dived lower this week after the Bank of England issued a gloomy economic outlook.

The central bank had Wednesday said that British inflation could fall sharply toward the government's target of 2.0 percent from early 2009, which prompted traders to bet on interest rate cuts sooner than previously expected.

Barclays Capital analysts have said that they now expect quarter-point rate cuts in Britain in November, February, April, and May.

"The surprise was not so much that the next move in rates is likely to be down -- that has been our forecast for some time -- but that the (central bank) seems happy to nurture this expectation," Barclays Capital analyst Simon Hayes said on Friday.

Date created : 2008-08-15

COMMENT(S)