Pounds and dollars
The pound has fallen to a two-year low against the dollar reflecting traders’ increasing concerns about recession around the world as energy prices continue to soar.
But sterling is also weak because markets are worried about future UK economic growth, analysts said.
Sterling could fall even further after predictions of economic stagnation and as inflation rises, they added.
London shares regained some ground on Wednesday following Tuesday’s falls.
The resignation of two senior government ministers on Tuesday evening, including former Chancellor Rishi Sunak, was not a significant factor in the pound’s fall, Rabobank head currency strategist Jane Foley told the BBC Radio 4 Today programme.
“The market is so much more concerned with growth, and what is this government going to do… the news in itself didn’t create too many additional woes,” she said.
On Tuesday the pound fell below $1.19 for the first time since March…
