The pound hits record lows

In just a few hours the British currency fell sharply, reaching record lows.

Negocios September 27
News Mundocrypto

The fear derived from the financial instability of the British government has caused its currency to lose almost 5% of its value with the US dollar yesterday. 


The crash originated during the negotiation process between Australia and Asia on Monday, September 26, leading to a loss of over 3% since last Friday. 


The British government revealed its tax cut plans on Friday, which include higher rates and higher public borrowing.  This has generated uncertainty among investors and has called into question the financial sustainability of the nation. 


The resulting confrontation between the rise in rates by the British Bank and the tax saving plans of the UK Government threatens to break the existing parity between the pound and the dollar. Currently, the price of the British currency is around 1.08 dollars. The pound has not only been affected by a series of weak economic indicators but also to some extent by the current increase in strength of the dollar. 


There is no doubt that the US currency has gained strength. This has been clear in recent times in comparison to the depreciation of the euro, which has lost up to 14% in a single year. 


The strength of the dollar is becoming more and more evident and is affecting the main world economies on a large scale.  


Other currencies such as the Chinese yuan show dips of 0.5%, touching their lowest level in over 2 years. The Kospi of South Korea has followed suit with a decline of 2.7%, not to mention the Japanese Nikkei which comes in with a crash of 2.4%. 

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