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According to Economy News, the pound fell to $1.5820 on Tuesday morning, with the US currency tipped to remain strong while fears about an Italian debt crisis persist.
The southern European nation's benchmark borrowing costs climbed to six per cent on Monday for the first time since the introduction of the euro following the sale of billions of euros worth of bonds.
Richard Driver, a currency analyst at UK money transfer company Caxton FX, highlighted the severity of the problem in Italy and the impact it could have on fx trading.
In a note to investors, he said: "The periphery is one thing, but Italy is a core EU economy and a bailout there would trigger serious doubts over the viability of the whole eurozone project."
Posted by Greg Secker
