The worst of the recession may not be over as signs indicate that Lloyds Banking Group Plc will report further losses. The pound has declined against the euro and US dollar as Lloyds may announce losses amounting to GBP13 billion. The British currency fell to the weakest level in a month versus the euro and is heading for a second day of losses against the US dollar.

The pound's foreign exchange rate depreciated 1% to 86.74 pence per euro and fell 0.6% to USD1.6113. The pound's performance is balanced against risk appetite, and is the reason why it has lost 23% against the euro and 26% against the dollar since the beginning of last year's recession. Unfortunately the pound also weakened against all but three of the world's 16 most traded currencies.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.