POUND TO FALL BELOW EURO

BRITAIN faces a “probable’’ sterling crisis before the general election, with economists predicting the value of the pound will fall below the euro.

It would be triggered if Labour dramatically narrowed the Tories’ poll lead. This would spark market concern that Britain would not get a new government committed to tackling the deficit, suggests the Centre for Economics and Business Research.

“The pound and the euro are like two equally-talented – or in this case untalented – downhill skiers racing each other,’’ it said. One euro is worth about 90p, but the currencies came close to parity about a year ago. (more)