Pound Sterling nears parity with euro

The Pound sterling is falling against the euro and is nearing parity.

Sterling nears parity with euro

By George Parker, Jane Croft and Peter Garnham

Published: December 18 2008 21:24 | Last updated: December 18 2008 21:24

The pound dropped to within 5p of parity with the euro on Thursday as it fell to a fresh record low against the single currency for the ninth successive day.

Sterling sank to 95.5p against the euro for the first time amid rising speculation that the Bank of England will follow the US Federal Reserve and cut rates to virtually zero.

The speed of sterling’s fall has been gathering momentum.

[Read further at the Financial Times, http://www.ft.com/cms/s/0/ddbc5f48-cd48-11dd-9905-000077b07658.html]