The US dollar and British Pound have been the two worst performing of the major currencies over the past few months. Since July, the pound has lost 6.4 percent against a basket of the nine other most-traded currencies, including last week’s 1.29 percent drop. However, according to some, the worst is yet to come.
“There’s definitely more weakness to come,†said Hans- Guenter Redeker, global head of currency strategy in London at BNP Paribas SA. “The fiscal consolidation is going to hit the economy at a time when it’s slowing. Under these conditions, you need to have loose monetary conditions and that weakens the exchange rate.â€
Source: Bloomberg
