Wise not to pretend about pound’s uncertainty

THE time to have been seriously worried about the pound, and for foreigners to hold off from buying British assets, was a year ago – when hardly anyone was worried about it. The fact taxi drivers have started to talk obsessively about the exchange rate is the surest sign yet that the bird has flown.

The changes against individual currencies are startling. Since the beginning of the credit crisis 18 months ago, the pound has slumped by 25% against the dollar, 30% against the euro, 30% against the Swiss franc and 45% against the yen.