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| Version 2 | Version 3 |
|---|---|
| Pound at record low against euro | Pound at record low against euro |
| (10 minutes later) | |
| The pound has fallen to an all-time low against the euro after weak manufacturing data underscored a gloomy outlook for the UK economy. | The pound has fallen to an all-time low against the euro after weak manufacturing data underscored a gloomy outlook for the UK economy. |
| Sterling is now at its weakest since the single currency was introduced in 1999, it now takes 75.86 pence to buy a euro. One pound was worth 1.3243 euros. | |
| The pound also hit a 10-month low versus the dollar at $1.9485. | |
| After a strong 2007, the pound is expected to weaken in 2008 as interest rates fall and the UK economy slows. | After a strong 2007, the pound is expected to weaken in 2008 as interest rates fall and the UK economy slows. |
| The pound hit a 26-year high against the dollar last year, above $2. | The pound hit a 26-year high against the dollar last year, above $2. |
| Analysts said investors were moving out of high yielding currencies in favour of the lower-yielding yen. | Analysts said investors were moving out of high yielding currencies in favour of the lower-yielding yen. |
| "Growth-oriented currencies are all under pressure, weaker sentiment has not helped the pound," Kamal Sharma, currency strategist at Bank of America, said. | "Growth-oriented currencies are all under pressure, weaker sentiment has not helped the pound," Kamal Sharma, currency strategist at Bank of America, said. |
| 'Precarious' | 'Precarious' |
| Data from the Office for National Statistics showed an unexpected decline in the UK's manufacturing sector in November, fuelling expectations of a cut in interest rates. | Data from the Office for National Statistics showed an unexpected decline in the UK's manufacturing sector in November, fuelling expectations of a cut in interest rates. |
| "The pound's position looks increasingly precarious," Bank of New York Mellon said in a note to investors. | "The pound's position looks increasingly precarious," Bank of New York Mellon said in a note to investors. |
| The Bank of England opted to keep rates unchanged at 5.5% on Thursday but many economists expect the Bank to lower the cost of borrowing in February. | The Bank of England opted to keep rates unchanged at 5.5% on Thursday but many economists expect the Bank to lower the cost of borrowing in February. |
| A weaker pound would make UK exports more competitive on world markets but it could also make imported goods more expensive and raise costs for Britons travelling abroad. | A weaker pound would make UK exports more competitive on world markets but it could also make imported goods more expensive and raise costs for Britons travelling abroad. |