Pound sinks to record low against the dollar

The pound has fallen to a new record low against the dollar today. Is this a sign of a lack of confidence from the UK business community in the Government’s latest measures to combat the recession? Or thanks, perhaps, to Barack Obama’s Inauguration Day? The first black U.S. president is ready to make history: from his landslide election victory he is riding a wave of public optimism that he will need to solve the worst economic crisis in 70 years.

The dollar grows and the sterling sinks… “Sterling tumbled to its lowest level against the dollar in seven-and-a-half years today,” reports the Guardian.co.uk “as traders digested the implications of the government’s latest multibillion-pound lifeline to support the banking sector”.

The British pound has been weakening during the economic downturn: in the past 12 months the sterling has fallen and shows no signs of stopping. The question is still: is it time to change and accept the euro?