Mark Carney's first week: Pound slumps below $1.50 after new governor backs more monetary stimulus
Sterling hits its weakest since mid-March
The pound has slumped to a four-month low, below $1.50, after the Bank of England's denial that it plans any interest rate hike.
Dipping to $1.4991, Sterling hit its weakest since mid-March. It also weakened against the euro, though not so dramatically.
The news follows a statement after new governor Mark Carney's first policy meeting, in which he effectively ruled out rate rises for years to come. The bank's Monetary Policy Committee left interest rates at their historic low of 0.5%, and quantitative easing - the electronic creation of new money - unchanged at £375bn.
Nawaz Ali, market analyst at Western Union Business Solutions, told Reuters: "An unusual statement with guidance was proof for sterling bears [investors who believe the pound will decline in value] that Carney's arrival will mark the start of more monetary activism.
"Investors have every reason to anticipate a change in monetary policy in the coming months, which will mean more downside for sterling."
And Mario Draghi, head of the European Central Bank, said on Thursday that they were taking unprecedented steps to give so-called forward guidance to reassure the markets that it had no plans to raise interest rates soon.
- 1 Raif Badawi, the Saudi Arabian blogger sentenced to 1,000 lashes, may now face death penalty
- 2 PornHub turns masturbation into energy in bid to save the planet
- 3 Dakota Johnson's 'It's only Isis' Saturday Night Live sketch sparks controversy
- 4 Robert Mugabe eats a zoo for 'obscene' 91st birthday party
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
End of the licence fee: BBC to back radical overhaul of how Corporation is funded
Raif Badawi, the Saudi Arabian blogger sentenced to 1,000 lashes, may now face death penalty
Someone has actually got a tattoo of that dress
PornHub turns masturbation into energy in bid to save the planet
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
iJobs Money & Business
£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...
£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...