(Source: Yahoo! Finance)
As weak manufacturing and industrial data came out, signalling a likely triple-dip recession, the pound plunged to a new two and a half year low against the dollar.
Allister Heath writes on the weakness of the pound:
On New Year’s Eve, just two months and 12 days ago, £1 would buy $1.63. Today, it’ll buy you $1.49, an 8.6 per cent collapse; good news for exporters and multinationals, but awful if you are planning to holiday abroad.
We've talked about how a depreciation might be bad news for the economy on the blog before:
While the UK's exports aren't particularly price sensitive, its imports are. A weaker pound will likely translate into inflation, and tighten household purse strings further.
FTSE100 corps' ever decreasing links to UK PLC evident by index's push higher after awful UK Industrial & Manufacturnig Production figs— Mike van Dulken (@Accendo_Mike) March 12, 2013