Pound hits 32-month low

<p>The pound is at its lowest point in 32 months.</p>

The pound has fallen to its lowest point in the last 32 months today (March 11th).

Sterling was down 0.3 per cent against the dollar to $1.4868 and against the euro it dropped 0.3 per cent to 1.1438 euros.

Despite the drop in the value of the pound, the FTSE 100 index gained 13.96 points at 6,497.54.

Kathleen Brooks, research director at currency trader Forex.com, stated the dollar's "new found strength" was one of the key reasons for the problems facing the pound.

"While the Bank of England did not increase quantitative easing on Thursday, we think it's waiting in the wings," she was quoted as saying by the Daily Telegraph.

Ms Brooks added she expects the minutes of the meeting of the Monetary Policy Committee will show the group was split on what to do.

Andy Scott, premier account manager at foreign currency exchange brokers HiFX, recently stated sterling had made "broad gains" shortly after it was announced the Bank of England was holding monetary policy for the next month.

Learn about the sterling and forex trading at City Index.

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