Pound falls as EU and US rates look more tempting
The pound hit a two month low against both the euro and the dollar yesterday as investors tip the Bank of England to freeze rates while the US and European central banks are expected to hike borrowing costs.
This morning the pound stood at 1.4471 to the euro and at 1.8157 to the US dollar.
Despite the recent lack of interest in the UK currency the economy as a whole seems to be attracting many world wide investors.
A new report by the Organisation of Economic Cooperation and Development (OECD) shows that the UK received more inward investment than any other country last year, beating even the likes of the US and China.
Direct investment into the UK hit a record £91 billion in 2005, a large percentage of which was accounted for by high profile takeovers such as O2, P&O and Abbey National.
However, Britain has been investing too and secured third spot in the ranking of outward investors.