Pound Hits New Record Low vs. Yen

Great Britain poundThe British pound fell to the record low level against the Japanese yen and declined significantly against the other major currencies today as the market participants are concerned that the U.K. recession will continue deepening and the Bank of England will have to reduce the rates further.

The pound declined to the lowest level against the U.S. dollar since June 2001 and posted its fourth negative daily result against the European currency. The yen gained against the all high-yielding currencies and renewed its 8-year high against the New Zealand dollar today, while reaching a new absolute maximum against the pound.

Analysts believe that the Bank of England minutes for the last Monetary Policy Committee meeting, that are going to be released today, will show that the bearish sentiments are still very strong in BoE. Traders should be careful though, the the pound will likely to get to a strong support level against the U.S. dollar soon.

GBP/USD fell from 1.3870 to 1.3775 as of 8:53 GMT today. GBP/JPY declined from 124.39 to 123.74, while the daily low was at 122.94 — its new all-time minimum. EUR/GBP rose from 0.9273 to 0.9368 today.