Currency vigilantes 'rampant' as sterling tumbles to fresh low

M&G's Mike Riddell has predicted further falls for sterling in the face of 'rampant' selling from the 'currency vigilantes', amid a drop in sterling yesterday to a new multi-year low.

Sterling fell against the dollar once more yesterday, hitting a low of $1.4832 at one stage. While it has recovered marginally - this morning it is trading at $1.4929 - there is little support for the currency at present and analysts are predicting a further move down. The pound is the second worst performer versus the dollar year to date, with only Japan's yen faring worse with a decline of 8.5%. But despite such a sharp - and quick - move lower, Riddell said the team at M&G 'still hate sterling' and expect it to weaken from here as the currency vigiliantes enforce the discipline ...