Pound's fall continues to $1.47

Why US holidays got dearer

The pound has continued to fall against the dollar, hitting its lowest rate in six and a half years against the US currency on fears of a deep recession.

It follows comments from the Bank of England on Wednesday that the UK economy had worsened and that it would cut interest rates again if necessary.

Sterling fell to $1.467 - its weakest level since 2002.

The pound has lost more than a quarter of its value against the dollar since July, when it was worth more than $2.

The pound also hit a new low of 85 pence per euro.

Measured against a basket of currencies of the UK's main trading partners, sterling is at its weakest levels since 1996.

Last week, the Bank of England delivered a shock one-and-a-half percentage point cut in UK interest rates to 3%, the lowest level since 1955.

Lower interest rates typically make the pound less attractive to overseas investors.

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