Pound falls to lowest level in 37 years

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Confidence has evaporated in the UK’s plan to borrow its way out of trouble, with spooked investors piling in to dollars

British pound banknotes, May 30 2022. File picture: REUTERS/DADO RUVIC.

The pound plunged nearly 5% at one point to $1.0327, breaking below 1985 lows. Moves were exacerbated by thinner liquidity in the Asia session, but even after stumbling back to $1.05 the currency is still down some 7% in just two sessions. The collapse sent the dollar higher broadly and it hit multiyear peaks on the Australian and New Zealand dollars and yuan and a new 20-year top of $0.9528/€.

 

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Is it not incredible that the USA the main catalyst behind the sanctions on Russia is the main beneficiary on its dollar while the rest of the coalition partners and the world suffer the consequences of this invasion.

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