Pound falls to weakest level since 1985 against dollar amid dire UK economy

The last time the sterling-dollar exchange rate was this low the world's richest nations signed the Plaza Accord, an agreement to weaken the US currency

The pound slid to its weakest level in close to four decades, weighed down by a dire economic outlook and the latest bout of US dollar strength.
 

Sterling fell as much as 1 per cent to $1.1410, a level last seen in 1985, when Margaret Thatcher was prime minister. Much like then, the economic outlook is challenging. Britain is grappling with the dual threats of double-digit inflation and the prospect of a long economic contraction. The Bank of England is warning of more than a year of recession.

The last time the sterling-dollar exchange rate was this low the world’s richest