Pound hits record low of DM2.4818

THE POUND sank by almost 5 pfennigs at one point yesterday, as rumours of Mr Lamont's imminent resignation spread through financial markets, writes Peter Torday. But sterling later recovered slightly, to finish nearly 3 pfennigs down at a record low of DM2.4818. The markets are likely to remain unsettled, but speculation over interest rates continued, with the markets looking for lower UK rates this autumn amid hopes that the Bundesbank might soon be able to cut German rates.