2 Feb 2013

Pound weakening

1:33 pm on 2 February 2013

The pound continued to weaken on Friday against the euro.

At one point, sterling fell 1.8% against the euro from a day earlier, the largest one-day fall recorded since May 2010.

This meant one pound was worth 1.1473 euros, the lowest since October 2011.

The BBC reports the pound has been weakened by fears about Britain's AAA credit rating. The UK economy contracted by 0.3% in the final quarter of 2012.

At the same time, the eurozone economy is showing more signs of slow recovery.

In later trading on Friday, the pound recovered some ground against the euro to stand at 1.15000 euros, 1.5% lower than a day earlier. The euro also rose strongly against the US dollar.