Sterling saw a third consecutive day of strengthening today, as the dollar was driven down by concerns over US handling of the credit crisis.
The US Federal Reserve will emerge from its two-day policy meeting today, possible to announce its plans for continuing response to the downturn. Speculators are concerned about new interest rate measures that could damage the value of the dollar.
Sterling is currently around $1.42, as compared to Friday"s historic lows of $1.35. However, investor confidence in sterling may take a further battering as the Bank of England is expected to cut interest rates further next week, to 1 per cent or below.
Elsewhere, the pound was down 0.35 cents against the euro, to sit at €1.0725.