British Pound and the Euro fall against the US dollar

The pound was down 1.7 cents at $1.7543 while the Euro was down 1.8 cents to $1.3590 amid the growing fears about the lack of corresponding action by the European governments towards the banking fiasco.

All over Europe share prices tumbled as individual member states announced measures to protect their own private bank account deposits and safeguard themselves from banking disasters like the run of Northern Rock.

Angela Merkel the German Chancellor announced a similar deal to that of Greece and Ireland whereas the government would guarantee all private German bank deposits.

At the same time British Prime Minister Gordon Brown guaranteed private savings to 50,000 overwriting the previous guarantee of £35,000, the British government confirmed this would take immediate effect.
Analysts predict that the Bank of England will cut interest rates this Thursday in a desperate bid to win back consumer confidents which is so desperately needed.

Read the full article: telegraph
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