British pound

2022 - 9 - 26

British pound plummets to record low against the dollar (CNN)

The British pound crashed to a record low against the US dollar on Monday on growing fears about the stability of UK government finances.

for the first time since 1998 to prop up the yen when it hit 145. That should make it more costly to buy foreign currencies via derivatives, which might slow the pace of the yuan's decline. "Should there be any escalation to the war in Ukraine ... Last Thursday, the Japanese central bank [SHCOMP](https://money.cnn.com/data/world_markets/se_composite/?source=story_quote_link)) It has lost nearly 21% so far this year, compared with a fall of 15% in the euro. The offshore yuan fell 0.4%. [N225](https://money.cnn.com/data/world_markets/nikkei225/?source=story_quote_link)) [KOSPI](https://money.cnn.com/data/world_markets/kospi/?source=story_quote_link)) [intervened in the currency market](https://edition.cnn.com/2022/09/22/investing/japan-yen-intervention/index.html) Investors are monitoring what would be the most far-right government since the fascist era of Benito Mussolini, which has raised concerns about cohesion within the European Union. [sold off on Friday](https://edition.cnn.com/2022/09/23/investing/dow-stock-market-today/index.html)

Why is the British pound tanking as the US dollar soars? (Aljazeera.com)

Sharp fluctuations of major currencies inject new uncertainty into fraught global economic outlook.

“Of course, central banks in other jurisdictions such as the UK have also been raising interest rates, and the eurozone is planning to do likewise. Europe is on the verge of a recession and the UK’s new government has stirred crisis talk with its fiscal stimulus adding to its current account deficit.” Higher energy prices will in turn push up the cost of other goods and services. Japan is the only G10 country not to raise interest rates. The issue with aggressively large interest rate hikes is that it’s likely to push the economy into a recession, which no one wants to see.” “These countries will either have to tax their economies more, issue inflationary local money or simply borrow more. “The US allies are also having serious struggles. “So with the war in Ukraine, economic and political problems in Europe, high inflation, etc, it is not surprising investors are turning to the US dollar.” “The US dollar has always been seen as a safe haven for investors because the US is such a strong and large economy, so if there is global uncertainty, it’s always a safe bet to hold US dollars because it retains value well,” Tien said. The first is confidence in the US economy relative to its peers. “The new prime minister’s economic policy of lowering taxes on the wealthy is not too popular, and the consensus is that it will not work in stimulating the economy.” As the British pound plummets in value, the US dollar is flying high.

The British pound just plummeted: What it means for the U.K., tourists (The Washington Post)

Gas and food prices are expected to rise after the British pound's sharp decline, though the fall could also draw more tourists to the country.

In July, the euro [sank to even with the dollar](https://www.washingtonpost.com/business/2022/07/12/euro-us-dollar-parity/?itid=lk_inline_manual_5) for the first time in nearly two decades. [voted to exit](https://www.washingtonpost.com/business/economy/britains-exit-from-eu-sends-global-economies-into-tailspin/2016/06/24/b898124a-3a3f-11e6-8f7c-d4c723a2becb_story.html?itid=lk_inline_manual_5) the European Union in 2016. [to a record low](https://www.washingtonpost.com/world/2022/09/26/uk-gbp-pound-falls-usd-dollar/?utm_source=twitter&utm_medium=social&utm_campaign=wp_main&itid=lk_inline_manual_2) against the soaring dollar on Monday, spurring concerns of even higher inflation and prompting social media users to share defeatist memes about the world’s fifth-largest economy.

British pound stable after sharp drop, but analysts warn it's 'too little ... (Globalnews.ca)

The United Kingdom's pound has stabilized a day after plummeting to a record low as the British government plans tax cuts to deal with a cost-of-living ...

“The world we are heading for is a bumpy few weeks,” he told Sky News. But many economists say it is unlikely the gamble will pay off. The U.K. Kwarteng and Prime Minister Liz Truss, who replaced Boris Johnson as prime minister on Sept. 23, alongside an economic forecast by the independent Office for Budget Responsibility. The pound was trading at around US$1.08 on Tuesday morning.

British pound stabilizes, but turmoil still roils UK economy (Financial Post)

LONDON (AP) — The British pound stabilized Tuesday as U.K. authorities tried to ease investor concerns after the biggest tax cuts in 50 years sent the ...

6, are betting that lower taxes and reduced bureaucracy eventually will generate enough additional revenue to pay for the tax cuts announced Friday. Treasury also sought to reassure investors, saying it would set out a more detailed fiscal plan and independent analysis from the Office for Budget Responsibility on Nov. The U.K. Late Monday, the central bank said it was “closely monitoring” financial markets and was prepared to boost interest rates “as much as needed” to curb inflation, which is already running at 9.9%, the highest among major economies. The pound has fallen 20% against the dollar this year. LONDON (AP) — The British pound stabilized Tuesday as U.K.

British pound stabilizes, but turmoil still roils UK economy (The Washington Post)

The British pound stabilized Tuesday as U.K. authorities tried to ease investor concerns after the biggest tax cut in 50 years sent the currency tumbling to ...

“The world we are heading for is a bumpy few weeks,” Bell told Sky News. [prepared to boost interest rates](https://apnews.com/article/inflation-prices-94f1b2ea777ec039ae307bd431b338f9) “as much as needed” to curb inflation, which is already running at 9.9%, the highest among major economies. “I was very pessimistic about the consequences of utterly irresponsible U.K. Our 70-year-high tax burden was also unsustainable,″ Kwarteng said in talks with investors on Tuesday following the so-called “mini-budget″ last week. Treasury also sought to reassure investors, saying it would set out a more detailed fiscal plan and independent analysis from the Office for Budget Responsibility on Nov. The U.K.

British pound stabilizes, but turmoil still roils UK economy (ABC News)

The British pound stabilized Tuesday as U.K. authorities tried to ease investor concerns after the biggest tax cut in 50 years sent the currency tumbling to a record low the previous day. ByDANICA KIRKA, JILL LAWLESS and SYLVIA HUI Associated Press.

“The world we are heading for is a bumpy few weeks,” Bell told Sky News. “I was very pessimistic about the consequences of utterly irresponsible U.K. Our 70-year-high tax burden was also unsustainable,″ Kwarteng said in talks with investors on Tuesday following the so-called “mini-budget″ last week. Late Monday, the central bank said it was “closely monitoring’’ financial markets and was prepared to boost interest rates “as much as needed” to curb inflation, which is already running at 9.9%, the highest among major economies. Treasury also sought to reassure investors, saying it would set out a more detailed fiscal plan and independent analysis from the Office for Budget Responsibility on Nov. The U.K.