Sterling Near Two Year Low Vs Dollar, Twelve Year Low Trade-Weighted

Sterling hit a near 12-year low on a trade-weighted basis Wednesday and hovered just above yesterday's two-year low versus the dollar, weighed by worries about domestic economic weakness and a deterioration in the broader European economy.

Against a currency basket of the UK's major trading partners, sterling fell to 90.4, a level not seen since October 1996.

At 10.15am the pound stood at $1.8456 having fallen as low as $1.8328 on Tuesday down dramatically from $2.0153 hit just over a month ago. Sterling is on track to clock it's worst monthly performance against the dollar since 1992.