Sterling fell to a fresh eight-year low yesterday against a resurgent euro as investors scurried for safety after North Korea fired a missile over Japan and the possible repercussions of Hurricane Harvey sent jitters through the markets.
Traders shifted out of both the pound and the dollar and into the euro on a nervy day that on which the FTSE 100 dropped sharply amid a broad stock market sell-off and a rally in the traditional safe haven of gold.
The pound lost 0.3 cents against the euro to trade at €1.0764, its lowest level since October 2009 barring last autumn’s “flash crash”. It is approaching record lows and is edging closer to parity with the euro, a position it has never reached in the euro’s