Nomura expects sterling to hit parity by end-November, $0.975 by year-end

LONDON (Reuters) – Japanese bank Nomura said on Monday it expected sterling to reach parity versus the dollar by end-November and then keep on falling, predicting further pain for the battered British currency.

In a research note, Nomura analysts said they expected the pound to hit $0.975 by year-end and $0.95 in the first quarter. It hit a record low of $1.0327 earlier on Monday.

“This is a fundamental balance of payments crisis, with politicians hoping it will eventually just calm down. Hope is not a strategy, and markets are reflecting that,” Nomura analysts said.

(Reporting by Dhara Ranasinghe; Editing by Tommy Reggiori Wilkes)