Hedge funds and investment managers are dumping sterling as disappointing economic growth in the UK, the threat of a downgrade of its debt and an upcoming change of guard at the Bank of England have fuelled concerns about a drop in the country’s asset values.

More speculators are shorting the pound than buying it for the first time in five months, according to figures from the US Commodity Futures Trading Commission that are used as a proxy for activity in the global hedge fund community. Betting against the pound is second only in popularity to shorting the yen, which has plunged in value against other currencies as investors have positioned themselves for more expansionary monetary policy in Japan.

“The pound seems clearly at risk of following the yen and suffering the next large-scale devaluation for a major currency,” said Mansoor Mohi-uddin, head of global currency strategy at UBS.