Sterling On The Ropes

It's pretty much a case of start as you mean to go on this mornning with the pound heading ever closer to parity agaist the euro and falling to a record trade-weighted low against a basket of currencies.

Comments in the papers over the weekend from Bank Monetary Policy Committee member Tim Besley and Deputy Bank Governor John Gieve, pointing out what we already knew, that there was no quick fix solution to the credit crisis added to the bearish tone. The Bank of England has relied too much on interest rates to control the economy, according to Gieve.

The pound fell to 1.0538 agaisnt the euro and $1.4750 against the dollar.

One euro is currenty worth 94.90 pence, edging closer to the record high of 95.56 pence hit on Thursday.

The pound is down around 22% on the year against the euro and 25% lower against the dollar.