Computers could be to blame for the pound's 'flash crash

The Bank of England is looking into the'flash crash' which sent the pound plunging more than 6 per cent against the US dollar overnight, while experts think computers are to blame. The value of sterling dived during the Asian trading session to 1.18, hitting fresh 31-year lows before recovering to 1.238. Experts are blaming algorithmic trading, systems of computers designed to follow a set of instructions for placing a trade. The Bank of England is'looking into' the'flash crash' (graph pictured) which sent the pound plunging more than 6 per cent against the US dollar overnight, but experts think computers are to blame With old school trading floors ancient history these days, investors - particularly big institutional players with millions or billions to invest - often depend on computers to pick winners. Automated trading systems can be set up to keep an eye on news headlines and react to potentially market-moving information.