Sunday, April 21

Day: September 27, 2023

Why the pound is in freefall
Featured, United Kingdom

Why the pound is in freefall

The pound has tumbled to a six-month low against the US dollar as traders predict the end of interest rate rises from the Bank of England and as America’s economy proves remarkably resilient. Sterling has dropped to $1.215, a level not seen since March and a sharp drop from its peak above $1.31 in July. The currency has fallen more than 3pc against the dollar so far this month and is now on track for its worst month since the aftermath of the mini-Budget last year. However, it remains well above the extraordinary depths of $1.068 plumbed a year ago in the wake of Liz Truss’s fiscal statement. Then, a bond market crunch took hold and shook confidence in Britain. This time around, it is not so serious. However, the weaker currency threatens to add to inflationary pressures and could mak...