Open

Coming up

Don't miss

Replay


LATEST SHOWS

FASHION

Paris, Haute Couture Fall/Winter 2014-2015.

Read more

REPORTERS

Exclusive: an unlikely victim of the 'War on Terror'

Read more

AFRICA NEWS

2014-07-11 21:47 AFRICA NEWS

Read more

MEDIAWATCH

Finally, a good use for new app "Yo"

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

FRANCE IN FOCUS

Politics: parties under pressure

Read more

FOCUS

In Burma, the rise of radical Buddhism

Read more

  • Israeli navy attacks Hamas base as tanks line up along Gaza border

    Read more

  • French court lifts mayor’s ban on Muslim hijab at beach

    Read more

  • Rival Libyan militias exchange heavy fire at Tripoli airport

    Read more

  • Holland beat hosts Brazil 3-0 to finish third in World Cup

    Read more

  • Germany vs Argentina - history and genius clash in World Cup final

    Read more

  • Iraqi parliament resumes session on key appointments

    Read more

  • Afghan presidential candidates agree to full vote audit, Kerry says

    Read more

  • France’s Kadri wins eighth stage at Tour de France

    Read more

  • Last of the Ramones, Tommy Ramone, dies aged 62

    Read more

  • Video: Outrage in wake of deadly Casablanca buildings collapse

    Read more

  • Iraqi forces ‘executed prisoners in reprisal’ for ISIS killings

    Read more

  • Ukraine promises retaliation after rebel assault

    Read more

  • Putin revives old Cuban flame and eyes Latin American minerals

    Read more

  • Amazon snubs French free delivery ban with one-cent charge

    Read more

  • Cleveland's NBA fans hail 'return of king' LeBron James

    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

Comments

COMMENT(S)