Pound rallies after King's optimism

Press Association
Pound coin
Pound coin

The battered pound fought back from recent near three-year lows after Bank of England boss Sir Mervyn King said sterling had fallen far enough and assured a recovery was "in sight".

Having slumped as low as 1.48 US dollars earlier this week, the pound rebounded on Sir Mervyn's upbeat comments - rising more than 0.5% to 1.52 dollars and holding firm at 1.16 euros.