Trade-weighted pound hits weakest in 12 years
The pound fell to a 12-year low against a basket of currency on Tuesday, as traders took a pessimistic economic outlook by the Chancellor as a sign to keep dumping the beleaguered currency.
Once booming Vietnam stocks slumpThe pound fell to 88.5 against a basket of currencies used by its major trading partners, hitting its lowest level since October 1996.
Earlier in the day, sterling hit a 2 1/2-year low against the dollar at $1.7853, and a record trough against the euro at 81.62 pence.
"Short-term, the outlook for sterling is not very good at all. Technically, it's extremely oversold but the trend is so strong downwards that it's silly just to stand in the way of it," said Naeem Wahid, currency strategist at Bank of Scotland Treasury Services.
(Reporting by Veronica Brown and Naomi Tajitsu)
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