Financial Times FT.com

Pound’s fall could hit eurozone ties

By Ralph Atkins in Frankfurt and Chris Giles in London

Published: January 13 2008 22:15 | Last updated: January 13 2008 22:15

The sudden fall in sterling could force a realignment of Britain’s economic relationship with the eurozone, resulting in potentially painful consequences for both it and the 15-country bloc.

Since November the pound has fallen by almost 9 per cent against the euro – a rate of decline not far off that seen during sterling’s enforced exit from the European exchange rate mechanism in 1992, when it fell 11 per cent against Germany’s D-Mark.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this