Tuesday, January 1, 2008

Biggest drop for sterling since '92

By Edmund Conway, Economics Editor Last Updated: 11:03pm GMT 31/12/2007

The pound suffered its weakest annual performance for 15 years in 2007, as markets bet that 2008 will be a miserable one for the British economy.
But despite the chaos caused by the credit squeeze, London's blue chip index the FTSE 100 has risen by 3.8pc since the start of 2007, along with a host of other equity markets around the world.
The sterling exchange rate index has weakened by 6.7pc in the past six months
Although sterling rose yesterday against other world currencies, it has fallen by 6.1pc in the past year, which is the biggest annual decline since 1992 - the year in which Britain was ejected from the European Exchange Rate Mechanism.


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