7:40am Tuesday 2nd March 2010
Sterling dipped below the all important psychological level of $1.50 yesterday as concerns around UK debt levels put pressure on the pound.
Mark O’Sullivan, director of dealing at leading foreign exchange firm Currencies Direct, said: “Although sterling rallied on the back of the weekend’s speculation over a possible bail out of Greece, hitting a high of $ 1.52 in Asia, reality has now set in.
“A bailout of Greece would leave the UK extremely vulnerable with its huge level of debt, a fact which our politicians seem determined to ignore. The markets need convincing that UK debt can be reduced.
“But as the pound drops, the currency markets appear to have run out of patience. Sterling could be staring over the edge of the abyss.”
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