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By Leigh Smith

Sterling exchange rates have suffered accross the board once again so far this morning on the back of worse than expected Industrial Production figures being released. This has seen the Pound lose between 0.3 and 0.4% against the basket of major currencies, but a larger 0.8% against the Australian Dollar, due to the increased confidence in the Dollar following on from their interest rate hike from 3% to 3.25% in the early hours of this morning. With it being predicted that the UK may not see interest rate increases until well into 2010 this is a trend we could see continue.

By Leigh Smith

Sterling has made some quite considerable losses so far during Thursday’s trading, with the Pound losing 1.4% on the Euro, 1.7% the US Dollar, and 1.6% against both Aussie and Kiwi Dollars.

The main reason that seems to be driving Sterling exchange rates down is Mervin King speaking earlier today where he confirmed, and seemed comfortable with, the fact that the weak Pound was helping the economy through increased exports.

Market analysts have said that this has helped ‘revive momentum to dump the Pound’, and how yesterday’s gains were ‘overdone’.

With Sterling being dumped as such on the scrapheap, the question you may ask yourself is how low will these levels fall to? It may be wise to think back to the start of 2009.