FX Week

Politics, economy deal double blow to sterling

The UK currency was trading at £0.669 against the euro on Friday, from £0.66 earlier in the week. At the start of 2003, the pound was trading at £0.64 against the single currency.

"It’s been a nasty week for sterling," said one FX trader at a UK bank in London. "We are getting back to levels not seen since 1999."

The market is concerned over splits in the UK government in relation to a potential war with Iraq. In addition, the question is being raised as to whether the UK should continue to su