Corporate foreign exchange news

Published by Jamie JemmesonThe 25 per cent depreciation of sterling seen in the past two years has the potential to become a catastrophic rout, the Telegraph has warned.Although many foreign exchange specialists view the slump in the pound as a timely and fortuitous recalibration of an overvalued currency, events this week have shown that with confidence in political strength and economic stability at a low ebb, the depreciation could become much deeper.The pound fell dramatically against the dollar at the beginning of this week as it emerged that Conservative peer Lord Ashcroft has been claiming non-domicile status for tax purposes, creating friction in the party and lowering it in the estimation of the public."The markets have spotted what we have already highlighted: a worrying uncertainty in the Conservative message. But there is a heavier responsibility on the Government," the paper warned in its Telegraph View column.In trading this morning (March 3rd), the pound partially recovered losses against the dollar as forex hedging specialists viewed that the slump this week was overdone. For more information on international payments, visit our Smart FX site