The pound crashed to a two-year low against the US dollar yesterday (August 26th) on the back of recession fears.
On Tuesday the UK currency fell to the $1.8331 mark, its weakest value since July 2006.
Yesterday’s plunge has put the currency firmly on track for its worst performing month since the UK removed itself from the European Exchange Rate Mechanism 16 years ago.
Steven Barrow, currency strategist at Standard Bank, told the Telegraph: "It’s likely that the only major central to lower rates will be the Bank of England and that gives the market something to focus on, and I think that’s what’s hurt sterling."
The slide yesterday also pegged the pound back to its weakest rating since 1996 against a basket of major foreign currencies.