British Pound Falls to Lowest Level Since 1985 as U.K. Economic Pain Mounts

The British pound slid to its lowest level against the U.S. dollar since 1985, a reflection of the U.K.’s dire economic situation. Investors are braced for sterling to weaken even further to a nadir not seen in more than two centuries of trading across the Atlantic.

The pound fell as low as $1.1443, the lowest level since 1985, according to FactSet, before recovering to trade up 0.1% midday London time Monday. Sterling’s descent is in part a side effect of the relentless U.S. dollar rally, which has driven both the euro and Japanese yen to multidecade lows in recent days.