Cable is now down over 17.5% since the UK voted to leave the EU back in June and appears to have now stabilised below the 1.23 handle.
Some say the currency was overvalued for years and its fall post-Brexit could serve as a release valve help loosen the stranglehold of the financial elites over the UK economy, which is just now just rebalancing as expected.
Exports will, no doubt, ultimately be boosted by the weaker pound.
It is pretty obvious that being the unrivalled financial centre of Europe, the City is a magnet for speculative property flows from China, Russia and the Middle East.
This created a bubble, leveraged by cheap US dollars through credit banks operating in London.
In an interview with Sky News, former governor of the BoE Mervyn King said,
‘Britain was borrowing 5pc to 6pc of GDP a year to buy imports and live beyond its means. The strong pound was great if you wanted to buy a Mercedes Benz or take a holiday in Spain, but the prosperity was an illusion, borrowed from the future”.
‘During the referendum campaign, someone said the real danger of Brexit is you'll end up with higher interest rates, lower house prices and a lower exchange rate, and I thought: dream on.
Because that's what we've been trying to achieve for the past three years and now we have a chance of getting it.’
"I don't think we should fear [Brexit]. It's not a bed of roses, but nor is it the end of the world,"
On the other hand, by losing a tenth of its value in a matter of minutes last Friday, the danger could be that sterling is weakening too quickly for the UK economy to adjust to the ‘new norm’.
Global markets certainly seem on edge about which form Brexit will take.
Friday’s slump came after PM Theresa May seemed to favour a tougher exit from the EU whereby Britain gives up full access to the single market in order to impose full control on its borders.
It is feared this will negatively affect trade and greatly restrict foreign investment needed to fund Britain’s huge current account deficit.
HSBC's global head of FX research David Bloom said. ‘The pound used to be a relatively simple currency that used to trade on cyclical events and data, but now it has become a political and structural currency. This is a recipe for weakness given Britain's twin (budget and current account) deficits’.
It is true that UK economy has fared better than most economists expected since June's Brexit vote.
But following a Quarterly Economic Survey of 7,000 businesses by the British Chambers of Commerce (BCC) yesterday, it was revealed that key measures of business investment and turnover confidence have hit a four-year low in the 3rd Quarter.
This pointed to a noticeable slowdown among services companies that form the backbone of Britain's private sector economy, which obviously doesn’t bode well in some people’s eyes.