This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-36636853
The article has changed 21 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Pound slump continues in Asian trading | Pound slump continues in Asian trading |
| (about 1 hour later) | |
| The pound has fallen in early trading in Asia on Monday, adding to Friday's record one-day decline. | The pound has fallen in early trading in Asia on Monday, adding to Friday's record one-day decline. |
| Sterling was trading at $1.3440, down more than 2% from Friday's close. Against the euro it was trading at €1.2165, down 1.3%. | |
| On Friday the pound had its biggest one-day fall against the dollar, at one stage sinking as low as $1.3236. | On Friday the pound had its biggest one-day fall against the dollar, at one stage sinking as low as $1.3236. |
| Some traders are betting that the pound still has further to slide. | Some traders are betting that the pound still has further to slide. |
| Jeremy Cook, chief economist at World First, said: "We are still looking for another 10% fall for the pound against the dollar in the coming months as data confirms the economic slowdown and monetary policy expectations increase." | Jeremy Cook, chief economist at World First, said: "We are still looking for another 10% fall for the pound against the dollar in the coming months as data confirms the economic slowdown and monetary policy expectations increase." |
| The pound also fell further against the yen on Monday, a currency considered to be a safe haven, to 137.16 yen - down from about 139.64. | |
| Stock markets also plunged on Friday, with more than $2tn (£1.5tn) wiped off the value of global stock markets, according to Standard and Poor's Dow Jones Indices. | Stock markets also plunged on Friday, with more than $2tn (£1.5tn) wiped off the value of global stock markets, according to Standard and Poor's Dow Jones Indices. |
| That was the biggest one-day loss in market value - even greater than the value wiped out following the collapse of Lehman Brothers during the 2008 financial crisis, Standard and Poor's calculated. | That was the biggest one-day loss in market value - even greater than the value wiped out following the collapse of Lehman Brothers during the 2008 financial crisis, Standard and Poor's calculated. |
| Christine Lagarde, head of the International Monetary Fund, said on Sunday night that financial markets had "vastly underestimated" the prospect of Brexit, but insisted that markets were "under control". | |
| Japanese prime minister Shinzo Abe, finance minister Taro Aso and deputy central bank governor Hiroshi Nakaso will hold an emergency meeting on Monday to discuss how to respond to market turbulence. | |
| Next pressures | Next pressures |
| Traders will be watching the UK's financial position closely over the coming months. | Traders will be watching the UK's financial position closely over the coming months. |
| "The funding position of the UK, with its twin current account and fiscal deficits, are the next pressures to weigh," Mr Cook said. | "The funding position of the UK, with its twin current account and fiscal deficits, are the next pressures to weigh," Mr Cook said. |
| The UK's current account deficit measures the balance of trade, investment income and money transfers. | The UK's current account deficit measures the balance of trade, investment income and money transfers. |
| That deficit means that the UK must borrow to pay its way in the world. | That deficit means that the UK must borrow to pay its way in the world. |
| The fiscal deficit refers to the gap between government expenditure and income that has to be financed by borrowing. | The fiscal deficit refers to the gap between government expenditure and income that has to be financed by borrowing. |
| Those indicators of the UK's financial health will also affect how much the UK government has to pay to borrow. | Those indicators of the UK's financial health will also affect how much the UK government has to pay to borrow. |
| On Friday there was demand for UK government debt, which drove down the yield - an early indication that the UK should be able to continue to borrow cheaply. | On Friday there was demand for UK government debt, which drove down the yield - an early indication that the UK should be able to continue to borrow cheaply. |