LONDON, March 23 Sterling will fall sharply this
year to as low as $1.06 against the dollar, as the process of
Britain leaving the European Union damages UK growth, currency
analysts at Deutsche Bank said on Thursday.
In one of the most pessimistic outlooks for sterling yet
among the world's big banks, they also said it could fall
towards parity with the euro. That would represent a fall of
around 15 percent against both the dollar and euro.
"We do not see sterling (currently) fully pricing a hard
Brexit outcome. Combined with limited adjustment in the UK's
current account deficit and slowing growth, we see further
downside, and forecast $1.06 in by year-end," they said in a
45-page special report on Brexit.
Sterling was trading around $1.25 against the dollar on
Wednesday. The euro was changing hands at 86.30 pence
, making the pound worth around 1.1585 euros
(Reporting by Jamie McGeever; Editing by Sujata Rao)