The U.K. economy contracted more than expected, 1.5% (or 6% at an annualized rate) in Q4 2008 , the biggest decline since 1980. This further weakened the pound which fell to the lowest level against the U.S. dollar since 1985 and to a new all time low against the yen.When this is written, one pound will only give you 1.355 dollars and 119 yen. To give you a perspective on just how dramatic this decline is consider that as late as June 22, 2007 (a mere 19 months ago), it took 124 yens to buy 1 U.S. dollar . The pound has in other words a lower value relative to the yen than the U.S. dollar had a mere 19 months ago. And also remember that 19 months ago, it took nearly (1.9975) 2 U.S. dollars to buy a pound. Relative to the yen, the pound has fallen from 248 to 119 yen, or 52%.