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The pound just fell off a cliff

Oct 25, 2016, 19:11 IST

Sterling is dropping like a stone on Tuesday afternoon.

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After a fairly sanguine morning for the currency, around 12.50 p.m. BST (7.50 a.m. ET) the pound began to drop sharply against the dollar.

As of 2.20 p.m. BST (9.20 a.m. ET) is down by more than 0.9% against the greenback to just $1.2122, a low not seen for around two weeks.

Here's how that looks:

Investing.com

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Chancellor Philip Hammond said that he sees "no reason" why he would necessarily reject any future requests from the Bank of England for further quantitative easing.

Bank of England Governor Mark Carney will appear in front of the House of Lords Economic Affairs Committee at 3:30 p.m. UK time to give the committee an update on the progress of monetary policy in the UK. Likely topics include the BoE's response to the UK's Brexit vote, and whether Carney will leave his post in 2018, or stay for a full term until 2021.

Sterling's crash in recent weeks has been well documented, and has led to comparisons between the UK's economy and that of emerging market nations.

Both Morgan Stanley and Citi argued that Britain is becoming an emerging market in notes on Friday, while HSBC has argued that the pound is now a political football that currency traders are using as a proxy vote for possible Brexit policies.

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