Sterling has plummeted in value as another rollercoaster week begins on the financial markets.

By 5.25pm, it was trading at $1.5570 compared to $1.5844 at the previous close.

As the UK heads into what many believe will be a severe recession, the pound has shed 13 per cent against the dollar this month alone.

Justin Urquhart Stewart, of Seven Investment Management, said: "Trying to anticipate currencies in this market is like trying to catch a falling knife."

Chancellor Alistair Darling will come under pressure this week to act to halt the dramatic slide in the value of the currency.

Meanwhile, the Bank of England is facing calls to cut interest rates before its scheduled meeting next month.

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