The sterling fell further versus the dollar yesterday, hitting its lowest since April 2006 as poor UK mortgage data added to a troubled economic picture, highlighted by comments over the weekend from Chancellor Alistair Darling.
Data from the Bank of England showed that mortgage approvals had fallen to a series low in July, while the manufacturing sector stayed firmly in contraction territory.
That comes after Chancellor of the Exchequer Alistair Darling said at the weekend that the country was facing its most challenging time in 60 years.
"The sterling-selling move is just carrying on, there's just no reason to stop selling at this point," said a trader in London.