The pound has fallen, against the United States dollar, to its lowest level in five years. Fears of recession resulted in a reduction of almost 3% against the dollar.
Mervyn King, governor of the Bank of England, warned that Britain was entering recession for the first time in 16 years. Sterling’s fall came shortly after this gloomy news from Mr King.
Overnight, the pound fell as low as $1.62, its lowest level since the second half of 2003. It then recovered later to $1.64.