Currency rating for sterling "extremely vulnerable"

Currency exchange markets could be all change for sterling as one of the UK's largest money management firms has warned that the pound's AAA rating is "extremely vulnerable".

In a note issued to investors, Standard Life's investment director Paul Laing, blamed the risky state of the currency on a "highly toxic" mix of economics and politics.

The comment sees Standard Life joining the ranks of asset management companies and ratings agencies who have suggested that the UK's currency is in a rather precarious position.

City AM reported Mr Laing as adding: "The clock has been ticking on the UK sovereign debt rating ever since the atrocious borrowing numbers outlined in the April 2009 budget."

Concerns have arisen regarding sterling as economists await a viable plan to deal with the country's mounting budget deficit.

In November 2009, the deficit stood at £16.2 billion, up from the previous year's figure of £13.2 billion.

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Posted by Eleanor Ward