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Global jitters adding to slide in value of pound

Weak: A pound barely buys one euro PICTURE: ALAMY

THE pound continues to struggle against the euro as global jitters over North Korea add to Brexit uncertainty in weakening its value.

One pound now buys barely more than one euro, as investors see the single currency as a safer haven than either sterling or the US dollar.

The pound rallied a little yesterday after falling to an 11-month low against the euro on Tuesday. But it has still lost more than three per cent of its value against the euro this month.

Morgan Stanley economists have predicted sterling will continue to weaken against the euro ahead of the Tory party conference in October as investors wait to see if Brexit conflicts in the government are settled.

The dollar fell to a two-and-a-half-year low on Tuesday following widespread concern in international markets after North Korea launched a ballistic missile over Japan.

Foreign exchange analyst Jane Foley, from Rabobank, said: ‘The location of the conflict and the parties involved make the euro, rather than the US dollar, the preferred safe haven currency of choice.’

Most world stocks rallied yesterday, as did the value of the dollar.