The British pound fell Wednesday, to its lowest level since 1985 once morest the US dollar, as investors dumped British assets in the face of a bleak economic outlook.
Sharjah 24 – Archyde.com:
Sterling plunged Wednesday, to its lowest level since 1985 once morest the US dollar, as investors dump British assets in the face of a bleak economic outlook and a strong bullish trend for the US currency.
Sterling is under pressure from sharp increases in inflation, and fears that tax cuts and an increase in public spending under a new government, may exacerbate price pressures.
The British currency, which has fallen more than 15% once morest the dollar so far this year, is also a headache for the Bank of England because it increases the cost of imports and can cause more imported inflation.
