This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8537959.stm

The article has changed 36 times. There is an RSS feed of changes available.

Version 14 Version 15
Pound slides on economic worries Pound slides on economic worries
(10 minutes later)
The pound has fallen to a nine-month low against the dollar with fears over the strength of the UK economy largely blamed for the slide.The pound has fallen to a nine-month low against the dollar with fears over the strength of the UK economy largely blamed for the slide.
Sterling fell 1.4 cents to $1.5261, the weakest since May 2009, and also dropped back against the euro.Sterling fell 1.4 cents to $1.5261, the weakest since May 2009, and also dropped back against the euro.
Analysts said investors were increasingly concerned that the UK would struggle to tackle its deficit.Analysts said investors were increasingly concerned that the UK would struggle to tackle its deficit.
There are also worries that GDP growth of 0.1% seen in the final three months of 2009 may be revised downwards.There are also worries that GDP growth of 0.1% seen in the final three months of 2009 may be revised downwards.
The next revision of GDP will be released on Friday and if it proves to have been a negative figure, that would show the UK had failed to emerge from recession.The next revision of GDP will be released on Friday and if it proves to have been a negative figure, that would show the UK had failed to emerge from recession.
Last week, figures showed that UK inflation had accelerated to 3.5% and that public finances had deteriorated further after the government borrowed another £4.3bn in January to plug the growing hole in the UK's finances.Last week, figures showed that UK inflation had accelerated to 3.5% and that public finances had deteriorated further after the government borrowed another £4.3bn in January to plug the growing hole in the UK's finances.
"The moves in sterling have gone further than most other currencies because of the poor UK data, raising concerns that weaknesses in the economy remain," said Lauren Rosborough, currency strategist at Westpac."The moves in sterling have gone further than most other currencies because of the poor UK data, raising concerns that weaknesses in the economy remain," said Lauren Rosborough, currency strategist at Westpac.
'Risk bucket''Risk bucket'
POUND STERLING V EUROLast updated: 26 Feb 2010, 11:06 UK *Chart shows local time £1 buyschange%1.1211-0.0056-0.50 More data on this currency pair POUND STERLING V EUROLast updated: 26 Feb 2010, 11:16 UK *Chart shows local time £1 buyschange%1.1204-0.0064-0.56 More data on this currency pair
The UK's deficit was 11.8% of GDP last year and is forecast to climb further in 2010 to levels similar to that of beleaguered Greece.The UK's deficit was 11.8% of GDP last year and is forecast to climb further in 2010 to levels similar to that of beleaguered Greece.
Bank of England governor Mervyn King this week told MPs that he believed there was no danger of a downgrade on the UK currency's AAA status.Bank of England governor Mervyn King this week told MPs that he believed there was no danger of a downgrade on the UK currency's AAA status.
However Rabobank International currency strategist Jeremy Sketch said that many investors were not convinced about the security of its rating.However Rabobank International currency strategist Jeremy Sketch said that many investors were not convinced about the security of its rating.
"Sterling is being seen in the risk bucket and risk is off the agenda right now," Mr Sketch told Bloomberg."Sterling is being seen in the risk bucket and risk is off the agenda right now," Mr Sketch told Bloomberg.
Some observers have also suggested that the political uncertainty facing the UK is also contributing to sterling's weakness.Some observers have also suggested that the political uncertainty facing the UK is also contributing to sterling's weakness.
Opinion polls suggest that the lead of the Conservative Party over the governing Labour Parliament is narrowing.Opinion polls suggest that the lead of the Conservative Party over the governing Labour Parliament is narrowing.
This increases the prospect of a hung parliament - seen as troublesome for struggling economies as it makes it harder for whoever is in power to quickly act to begin tackling economic problems.This increases the prospect of a hung parliament - seen as troublesome for struggling economies as it makes it harder for whoever is in power to quickly act to begin tackling economic problems.