Sterling likely to fall further; impact on Singapore firms, S-Reits mitigated by hedging, limited exposure

THE British pound is likely to continue to weaken as the United Kingdom pursues policies to jumpstart corporate growth amid soaring inflation caused by the European energy crisis.

Analysts predict that the pound could test further lows against the Singapore dollar, after reaching a 4-decade intra-day low on Monday (Sep 26) of 1.50.

The steep drop could hurt Singapore businesses operating in the UK.