Soros and peers eye sterling short as currency falls to seven-month low

Hedge fund giants are said to be preparing to short sterling after it fell to its lowest level against the dollar since July this week.

The pound fell by 0.5% to $1.5438 yesterday after remarks made by Bank of England policymaker Martin Weale over the weekend. Although it later recovered some ground, Weale is said to have spooked investors after claiming sterling may need to fall further to boost exports. “It may be that high levels of uncertainty and a reluctance to take on new risks have stood in the way of exporters seeking new markets and domestic producers doing what is needed to displace imports,” said Weale. “Provided the calmer atmosphere we have seen since the summer is sustained, we may see further benefi...