Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Pound Drops to Lowest Since March 2020 Amid UK Economic Woes

Published 14/06/2022, 13:06
Updated 14/06/2022, 13:06
© Bloomberg. A wooden plaque of the Bank of England (BOE) logo sits on a desk ahead of the bank's quarterly inflation report news conference in the City of London,n, U.K., on Thursday, Aug. 2, 2018. The BOE lifted its benchmark interest rate to the highest since 2009 and policy makers put on a united front to say that further tightening will be needed to rein in inflation. Photographer: Simon Dawson/Bloomberg

(Bloomberg) -- The pound sank to its lowest level against the dollar since March 2020 as traders eyed a widening gulf between the Bank of England and Federal Reserve rate-hiking cycles. 

The UK currency slid as much as 0.6% to $1.2064, taking year-to-date losses to almost 11%. The currency has been under pressure from a resurgent greenback after hotter-than-expected US inflation for May fueled expectations of a more aggressive Fed tightening.  

Concerns grew the BOE might have to take a more cautious approach to raising rates after data Monday showed a surprise contraction in the economy in April. Sterling also faces political risk such as the uncertainty over the fate of the agreement with the European Union over Northern Ireland. 

Diverging central-bank approaches could be seen this week, with both the Fed and the BOE set to announce rate decisions. 

 

 

 

©2022 Bloomberg L.P.

© Bloomberg. A wooden plaque of the Bank of England (BOE) logo sits on a desk ahead of the bank's quarterly inflation report news conference in the City of London,n, U.K., on Thursday, Aug. 2, 2018. The BOE lifted its benchmark interest rate to the highest since 2009 and policy makers put on a united front to say that further tightening will be needed to rein in inflation. Photographer: Simon Dawson/Bloomberg

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.