Investec AM sees 10-15% upside in 'undervalued' sterling

Investec Asset Management's Paul Carr believes sterling is the most undervalued major global currency.

Carr, who helps run $9.8bn of active currency funds at the group, says the pound is as much as 10-15% undervalued against a basket of global currencies. While Carr believes the UK, like the US, is a long way from raising interest rates - the manager says investors are currently too pessimistic. "There is still a lot of gloom surrounding the UK, whether that is more surrounding concerns for global economy or the upcoming spending cuts or the VAT hike," Carr says. "But globally things are ticking up and here in the UK the recent Q3 GDP figures caught us and others by surprise. "If...