Foreign exchange markets see sterling fall

Sterling's value on the foreign exchange markets has continued to fall following further political and economic pressures.

The UK currency fell to $1.49 at 10:00 GMT this morning (Monday, March 22nd) ahead of this week's Budget announcement.

Chancellor Alisatiar Darling is due to announce the Budget on March 24th, but with the continued concern over a hung parliament, analysts predict a tough future for sterling.

Paul Robson, currency strategist at RBS, told Reuters: "The outlook for sterling is desperately challenging going into the general election and there is still a lot of concern about the strength of the economy."

Prior to the pound's renewed descent, the currency had enjoyed a brief period of growth against the dollar.

Last week's revelation from the Office for National Statistics that the UK's unemployment rate fell in the three months to January was welcomed by a brief lift in sterling's worth.

News that the government's spending for the past year is likely to come in under-budget also improved the currency's performance.

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Posted by Sarah Pitton