The euro hit a record high against sterling again this morning, reaching £0.8162 at one point. It was hovering just below £0.8150 this evening.

Sterling's fall has come in the wake of comments by British Chancellor Alasdair Darling in which he said that his country's economic slump would be much more protracted than is generally understood.

He has been roundly attacked in some quarters, but maintains he has a public duty to tell the truth.

Meanwhile, the euro also fell below $1.45 against the US dollar earlier for the first time since February.