Pound falls to fresh low against euro

Following Chancellor Alistair Darling’s grave assessment of the British economy, the pound has fallen to a record low against the euro and also fell against the dollar.

In an interview with the Guardian newspaper, Chancellor Alistair Darling said the UK is facing the worst economic downturn in 60 years and it will be ‘profound and long lasting’.

Following Mr Darling’s assessment, the euro rose to 81.39p, its highest ever rate against the pound while sterling slumped to a two-year low of $1.80.

Today, housing intelligence business, Hometrack, revealed that house prices have fallen for the 11th consecutive month in August.

Meanwhile, figures today from the Bank of England revealed that the number of mortgages approved in July fell by 71%.

Furthermore, figures today from the Royal Institution of Chartered Surveyors revealed that in the three months to July, sales were at their lowest level for 30 years.

The organisation is urging the Government to take the necessary action to kick-start the housing market.

According to Paul Robson, a currency strategist at Royal Bank of Scotland, the recent bad news hasn’t helped and people are realising that the British economy is slowing.

Prime Minister Gordon Brown is to join Hazel Blears, the Communities Secretary, tomorrow and is to unveil plans for assistance for first-time buyers and people facing the threat of repossession.

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