Sterling back from the brink of free fall

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The Independent Online
STERLING rallied sharply yesterday for the first time since being forced out of the ERM, writes Peter Torday. Fears of a free fall receded.

The pound climbed by 5.62 pfennigs to close at DM2.4478 as speculators rushed to buy when there was no sign that Monday's punishing attack would be sustained. Shares also recovered lost ground. The FT-SE 100 Index of leading UK stocks closed 42.1 points higher, at 2488.4. But fears persist that sterling remains highly vulnerable if the markets fail to be reassured by Norman Lamont. The Chancellor will give a 'broad account' of policy to the Tory conference tomorrow.

Fresh signs of deepening recession emerged yesterday when new car sales in September fell 4 per cent below levels of a year ago.