Pound at lowest level for 16 years
Sterling fell yesterday to its lowest level since Black Wednesday in 1992, hitting a record new low against the euro and a two and a half year low against the dollar.
The fall was triggered by think tank Organisation for Economic Cooperation and Development (OECD) predictions that the UK is set to enter recession.
The Paris based OECD predicted that in the third quarter of 2008 the UK economy will shrink by 0.3%, rising to 0.4% in the final quarter.
Britain is the only major economy to face recession in the next six months.
