The pound fell to a 31-month low against the dollar and a 16-month low against the euro, reports The BBC.
Further falls are expected when markets open in Europe amid concerns that the credit downgrade points to further problems for UK economic recovery.
Ratings agency Moody’s made the downgrade on Friday evening, the first cut since the 1970s.
The main story overnight is without doubt the dramatic plunge in the Yen, which following the breach and trigger of USDJPY 100 stops has been a straight diagonal line to the upper right (or lower for the Yen across all currency crosses) and at last check was approaching 101.50, in turn sending the USD higher in virtually all jurisdictions.
Asian stock markets fell Tuesday as talks dragged on to resolve a massive debt mess in Greece before it explodes into a wider financial crisis.Benchmark oil hovered below $97 per barrel while the dollar ...
Frederic Ruffy submits: Sentiment
Pre-earnings jitters and the European Debt Crisis are weighing on Wall Street Monday. With no economic data to guide the early action, the focus was on overseas markets after stock benchmarks fell across the Eurozone. The concern is that the debt crisis is spreading to larger countries after bond yields moved higher across Spain and Italy Monday.