Pound hits 2 1/2 year low vs USD
Sterling hit a 2 1/2-year low against a resurgent dollar on Tuesday, as the beleaguered UK currency's battering continued amid a view of a UK economy on the brink of recession.
A hefty fall in oil prices boosted the dollar to a seven-month high against a basket of currencies, putting the pound under more selling pressure after weekend comments from the UK finance minister that economic conditions are at their worst in 60 years.
Traders were broadly dismissive of a government plan to rescue an ailing housing market which has plagued the economy, a view that also helped drive pound to a 12-year low against a basket of currencies, while lifting the euro to a record high.
As part of the plan, the UK Treasury said it would waive stamp duty for properties worth less than 175,000 pounds for the next year in an attempt to boost buying in a struggling housing market.
Against a basket of currencies of UK trading partners, the pound fell to 88.5, its weakest since October 1996.
At 11.10am London time sterling was $1.7816, having earlier hit $1.7785, it's lowest since 17 Apr 2006. One euro was worth 81.36 pence, having earlier set an all time high of 81.61 pence.
A hefty fall in oil prices boosted the dollar to a seven-month high against a basket of currencies, putting the pound under more selling pressure after weekend comments from the UK finance minister that economic conditions are at their worst in 60 years.
Traders were broadly dismissive of a government plan to rescue an ailing housing market which has plagued the economy, a view that also helped drive pound to a 12-year low against a basket of currencies, while lifting the euro to a record high.
As part of the plan, the UK Treasury said it would waive stamp duty for properties worth less than 175,000 pounds for the next year in an attempt to boost buying in a struggling housing market.
Against a basket of currencies of UK trading partners, the pound fell to 88.5, its weakest since October 1996.
At 11.10am London time sterling was $1.7816, having earlier hit $1.7785, it's lowest since 17 Apr 2006. One euro was worth 81.36 pence, having earlier set an all time high of 81.61 pence.
