WILL THE FALLING £ RISE AGAIN ?

Will the pound rise again?And there's no reason to expect things to get any better any time soon. Sterling doesn't have a lot going for it.

The dollar has similar problems - over-indebted consumers, a bust banking system and a government crossing its fingers and hoping to spend its way out of the slump. But it has the advantage of being the world's reserve currency. Sterling hasn't been in that position for a long time.

There's the yen - Japan is in recession and also has huge government debt. But it has the advantage of a solvent banking system and a flood of cash returning to its shores after being loaned out in the "yen carry trade" (where yen borrowed at low interest rates was invested in high interest rate countries).

The euro has lots of issues too, not least question marks hanging over the ability of Ireland, Spain, Greece and Italy to stay parts of the eurozone. But it's become a very popular currency with central banks over its short existence and it's also backed by a fairly sound economy - Germany - at its heart.
So really, there's no reason for anyone to invest in sterling right now. No wonder that Jim Rogers, the outspoken US commodities guru, reckons you should "sell any sterling you might have". And I've certainly been downbeat on the pound for quite some time................http://money.uk.msn.com/investing/articles/john-stepek/article.aspx?cp-documentid=13478884