THE TELEGRAPH: The pound fell to a new record low against the euro today after a stark warning that the pace of economic decline in Britain is accelerating as the country moves into a deep recession.
Sterling was the weakest it has been since the launch of the single currency in 1999, with one euro worth 87.79p compared with 71.91p just 12 months ago. The currency was under some pressure against the dollar too, hitting $1.4736 at its lowest point this morning.
For the first time in years, some currency analysts are beginning to speculate that the pound may be headed for parity - where one pound will buy you just one euro or one dollar. Others dismiss the view, expecting the euro to weaken next year as the downturn in Europe's economy worsens.
The pound is being hammered as investors quit the currency over fears that the UK will be one of the hardest hit by the global recession and - with Government debt mounting - is poorly equipped to cope. That message was reinforced this morning by the well-regarded National Institute of Economic and Social Research, which warned the UK is toppling into a deep recession in the fourth quarter and is likely to shrink by more than 1pc. >>> By Angela Monaghan | December 10, 2008
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