Pound at a record low against the Euro

The fall of the pound against the Euro had added to weight to the argument that interest rates need to cut again this week, following the fact that UK house prices have dropped by the greatest amount since the recession of 1992.

The pound dropped to 79.90 pence per euro the lowest since 1999, whilst it has also reduced to a six week low against the dollar $1.9688, from $1.9883 yesterday.

Predictions indicate that it may fall to $1.93 in six months.

It has also fallen by 0.8 percent to 202.08 Japanese yen and 0.9 percent to 1.9959 Swiss franc.

According to a survey to 50 of 61 economists believe that The Bank of England will cut its main rate a quarter-point to 5 percent on April 10, especially ofter Gordon Brown has said that the UK can afford to cut interest rates.

As the housing market is one of the key indicators concerning the Uk economy and the value of the pound, the current rate of falling housing prices is also mirrored by the weakening of the pound.

The average house price in the U.K. fell to 191,556 pounds, even though prediction indicated a drop of 3 percent in house valuations.

In the meantime the UK government has sold 1.2 billion pounds of inflation-protected bonds today, whilst it will also auction 2.25 billion pounds of 4.5 percent securities.

As a result of the drop in house prices buying the euro have become more favourable for investors.

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