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Sterling fell on Tuesday, hovering near a five-and-a-half month low against the euro after a survey showed a sharp slide in UK retail sales and as investors awaited UK inflation data at 9:30 a.m.
The pound sterling plunged to a 10-Month low last night against the dollar amid fears of a hung parliament. Yesterday the international markets gave a taste of things to come as the pound plunged through the psychologically important $1.50 mark to $1.4781, before fighting back in later trading to $1.49.
The UK pound sterling may fall below parity with the euro and drop to $1.05, the lowest level against the dollar since the mid-1980s, if the government tackles the country’s debt burden too early, UBS AG said.
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The pound sterling dived to a low not seen since May 2009 today over debt fears in the euro zone.
It was the fourth consecutive day of losses and the pound fell to $1.5535 in early London trade – an 8½ month low.
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