Jim Rogers: Sterling will continue to go down
The ratings agency Moody's has downgraded the UK economy from its highest credit rating of AAA to AA1.
The falling British pound is good news for exporters, as it means British goods are cheaper abroad. But it is bad news for inflation, as imports cost more and the cost of borrowing for the British government could also rise.
Speaking to the Today programme, Singapore-based investor and co-founder of the Quantum Fund Jim Rogers said: "I'm a little surprised it took Moody's so long to get around to lowering the credit rating.
"The UK, the US, and other countries are in serious trouble, and the world seems to know it. It's just the rating agencies that don't know it.
"I suspect sterling will continue to go down in real terms against real assets."
First broadcast on BBC Radio 4's Today programme on Monday 25 February 2013.
25 Feb 2013
- From the section Business