Pound at record low against euro

http://news.bbc.co.uk/2/hi/business/7159223.stm

Pound at record low against euro

The euro was supported by the ECB president's comments
The pound has fallen to a record low against the euro, as dealers
expect more Bank of England (BoE) interest rate cuts in 2008.

The pound bought just one euro 37.6 cents in quiet Christmas Eve
trading.

"There are increasing signs that the British economy has hit a brick
wall triggered by the decline in the housing market," said analysts at
BNP Paribas.

The European Central Bank (ECB) president Jean-Claude Trichet's recent
comments have also boosted the euro.

Inflation and growth

In an interview with the Financial Times, Mr Trichet hinted that the
ECB was more worried about inflation than economic growth.

He said that interest rate cuts in the US and Britain should not
distract the ECB from tightening its monetary policy.

"Other colleagues are in a different situation," Mr Trichet said.

Britain's record trade deficit has also helped push down the value of
sterling.