The economists among you will no doubt confirm that this is at least in part because the money markets feel the government is borrowing too much and our debt is too high.
And yet we are told we are still best placed to withstand a recession. Don't make me laugh. People aren't going to be taken for fools. They can read the tealeaves. They know that it is because contrary to what Gordon Brown tells us about our economy, it has been built not just on sand, but on a desert of debt and profligacy over the last ten years.
Forty one years ago, in November 1967, James Callaghan lost his job as Chancellor of the Exchequer after he devalued the Pound from $2.80 to $2.40 - mere 14%. Yet our supine financial media has let this incredible current day devaluation pass almost without comment.
In a recession, there are advantages to a fall in the value of your currency as it makes it easier to export - that's if you have anything left to export. But as John Redwood points out...
A modest devaluation to make our exports more competitive is one thing, but this sterling rout is now out of control and very damaging. We have fallen around 30% against the dollar since the summer. They will discover that this will make it more difficult to sell all the debt they wish to sell, as foreigners will be wary.
The value of the Pound is about to become the big story in town. And if not, why not?