Sterling tumbles to 2020 lows as investors dash for safety

[LONDON] The pound dropped sharply on Friday, losing nearly 1 per cent against the euro and the dollar as worries about the fast-spreading coronavirus sent investors out of currencies deemed riskier.

As investors rushed for the safe-haven Japanese yen, Swiss franc and US dollar, sterling fell to its lowest against the dollar since October. Other currencies closely linked to risk sentiment also tumbled - the Australian dollar fell 2 per cent.

Analysts said that while there was no sterling-specific news on Friday, Britain's finances had left it vulnerable - its large current account deficit means the country depends on overseas investment.