The pound fell by more than two cents against the dollar yesterday, a huge lurch downwards by normal daily standards, after the Bank of England hinted that it would not raise interest rates to prevent a burst of inflation.
Worries about “hard Brexit” rattled currency traders after a report in The Times yesterday that GDP could fall by as much as 9.5 per cent if the UK leaves the single market.
By yesterday evening the pound had dropped 2.3 cents to $1.2115 and by 1.3 cents against the euro to €1.0973. The dollar also has been strengthening steadily amid expectations that the US Federal Reserve will raise interest rates in December regardless of whether Hillary Clinton or Donald Trump wins the race for the White