The pound dropped 2.2% to as low as $1.10 on Friday, a new 37-year low, meaning a move to parity would mark another 10% drop. Sterling's all time-low is around $1.05.
"We think the UK will find it increasingly difficult to finance this deficit amidst such a deteriorating economic backdrop; something has to give, and that something will eventually be a much lower exchange rate," Citi analyst Vasileios Gkionakis said in a research note.
(Reporting by Tommy Reggiori Wilkes; Editing by Amanda Cooper)
