The pound fell to a 12-year low on a trade-weighted basis this morning(August 28th), as it edged closer to a record low versus the euro.
Shortly after 08:00 BST this morning the pound slipped to 89.8 on a trade-weighted basis, its lowest value since October 1996.
Recent weeks have also seen a resurgence in the US dollar versus the pound on the back of sliding crude oil prices and a sharply declining property market in the UK.
Michael Hewson, currency analyst for Sharecast, said: "For the past two years sterling has enjoyed heady status against the US dollar, being in close proximity to the $2 mark since 2006.
"Speculators are currently selling sterling on the basis that the Bank of England will have to cut interest rates by the end of the year as inflation declines and growth stalls."
At 09:45 BST this morning, the foreign currency exchangerates were £1.00 to $1.8366, £1.00 to 1.2443 euros, and one euro to $1.4756.