The British pound slid to its lowest level against the US dollar since 1985, a reflection of the UK’s dire economic situation. Investors are braced for sterling to weaken even further to a nadir not seen in more than two centuries of trading across the Atlantic.

The pound fell 0.3% on 5 September in early trading in Asia to $1.1475, according to FactSet. That is the lowest since 1985. Sterling’s descent is in part a side effect of the relentless US dollar rally, which has driven both the euro and Japanese yen to multi-decade lows in recent days.