Pound and euro ‘to be equal by end of next year', leading investment bank warns
THE pound will be worth the same as the Euro by the end of next year, a leading investment bank has warned.
UBS warned sterling could suffer a fate similar to that experienced during the 2008 financial crisis.
Sterling plunged to a new 31-year low against the dollar on Tuesday as fears over a so-called "hard Brexit" intensified, with experts warning that the pound could reach parity with the Euro next year.
The pound fell 0.5 per cent to 1.277 US dollars - its lowest level since 1985.
Sterling was also down 0.2 per cent against the Euro at 1.14 - its lowest since 2013.
John Wraith, head of UK rates strategy at UBS said sterling may experience falls similar to that seen during the global financial crisis.
"Although different in its underlying causes, a similar pattern of decline, pause, and fresh falls may be unfolding now," he said.
"We reiterate our forecasts for the end of 2017 of 1.20 dollars for GBP/USD, and 1.00 for EUR/GBP."