Wednesday, March 10, 2010

Pound falls again on deficit fears


Sterling fell on the currency markets again this morning following fresh concerns over Britain's soaring deficit and its trade gap.

The pound fell by 1.3 cents, taking it back below the $1.50 level at $1.494 after ratings agency Fitch said Britain must take firmer action to tackle the budget deficit. Brian Coulton, Fitch's head of Europe, Middle East and Africa sovereign ratings, warned that the government's current plans fell far short of what was needed, and said Britain's credit profile has deteriorated in recent months.

Coulton told a conference in London that Fitch was "uncomfortable with the fiscal adjustment path set out by UK authorities", and wants to see "more credible and stronger fiscal consolidation plans during the course of 2010". (more)

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