the dollar launched on Friday, September 23, a new assault against theeuro and the pound sterling, which approached the lowest level in its history after the presentation, in the United Kingdom, of budgetary measures considered very costly by the market. The pound fell to $1.0863 for the first time since 1985, not far from that year’s all-time high of $1.0520. The British currency lost more than 7% in ten days, a movement of a magnitude very rare in the foreign exchange market.
The new British Government of Liz Truss has unveiled this Friday a series of budgetary stimulus measures, among which the assumption of part of the household energy bill and the renunciation of a series of tax increases stand out. The package should force the UK to borrow an additional £72bn in the markets, worrying traders.
“Between Brexit, the Bank of England’s delay in raising rates, and now fiscal policy, I think the UK will go down in history as one of the worst macroeconomic deals by a major country in a long time,” he said. United States Treasury, Larry Summers. , which sees the pound potentially reaching parity with the dollar. “The pound sterling is in danger,” warned George Saravelos, an analyst at Deutsche Bank, who notes that the currency is falling even as interest rates on British debt rise, “this (…)
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