British pound hits new record-low against euro

12 December 2008

London: The British pound continued its sharp decline Thursday falling to its lowest-ever level against the euro since the single European currency was introduced in 1999. The pound fell to 1.1238 euros on the foreign exchanges in afternoon trading in London Thursday, but gained slighty against the dollar, with a pound worth 1.4924 US dollars.

The dollar also fell against other currencies, hitting the lowest level against the euro and the Japanese yen for the past six weeks.

Analysts said the pound was pushed lower by figures confirming a sharp downward trend in manufacturing Thursday, amid a generally bleak economic outlook.

British Prime Minister Gordon Brown, who remains opposed to joining the European currency, is understood to have told ministers that he is "not prepared to discuss" the issue.

Opinion polls on Britain have consistency shown popular rejection of the euro, with those voting "no" in the majority.
However, some analysts have expressed doubts that the rise of the euro against the pound will be a sustainable trend, particularly if European economies also continue to weaken.

Source: earthtimes.org