British Pound Hit 5 Year Low from Recession Fears

23 October 2008 you're planning a trip to the USA now, you might want to wait.

The pound traded near its lowest value in over five years against the dollar, ever since Gordon Brown warned that the UK is entering a recession with retail sales dropping last month and the British economy taking a hit this quarter.

"I don't see anything that can stop this,'' said David Woo, global head of currency strategy in London at Barclays Capital. "It's shocking. I can't say we've anticipated this move.''

Sterling's fall came after the Bank of England governor, Mervyn King, warned that Britain was probably entering its first recession in 16 years.

"We're hearing some very high fares being quoted," Stempler said, possibly 15 to 20 percent higher than those in the same period last year, which may discourage some from flying over the holidays.


TOPICS:   Economy

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