The pound has tumbled below $1.50 against the dollar as traders continue to scale back bets of higher interest rates in the UK, following the Bank of England's surprise statement on Thursday.
Sterling slid to a four-month low of $1.4991, the weakest since mid-March, extending the sharp losses that followed the BoE's warning that markets had been wrong to price in rate hikes for the near future.
The pound could fall further still, analysts warned, denting Britons' spending power at the start of the summer holiday season. Sterling also weakened against the euro, though not as markedly.
The drop in sterling follows a statement from Mark Carney's first policy meeting that sought to quash investor expectations that the bank preparing to reduce monetary stimulus. » | Katie Allen | Friday, July 05, 2013
