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European Central Bank measures to ensure liquidity availability for financial groups are ending, prompting nervous responses from Forex traders, reports Reuters.
Yesterday's strong sterling performance was backed up by tough austerity measures to control British debt, outlined in the emergency Budget on June 22nd.
Forex traders saw the euro drop below 81 pence, its lowest value since November 2008, the publication reveals.
The single European currency also fell to an eight-and-a-half-year low against the yen and performed weakly against the dollar.
Christian Lawrence, currency strategist at RBC Capital Markets, commented: "Certainly the path is down for the euro."
FTSE 100 performance also suffered as heavily weighted commodities and financial assets dragged the market lower, with mining companies Rio Tinto and Eurasian Natural Resources falling 4.4 per cent and 4.2 per cent respectively.
Posted by Clive Arneil
