The British pound hasn’t been this weak since Margaret Thatcher was prime minister
2 years, 4 months ago

The British pound hasn’t been this weak since Margaret Thatcher was prime minister

CNN  

New York CNN Business — The British pound fell to a 37-year low against the US dollar Wednesday as the United Kingdom grapples with a series of overlapping economic problems with no easy solutions. Meanwhile, Liz Truss is on her first full day in the job as the United Kingdom’s fourth prime minister since the Brexit vote in 2016, and she’s already staring down the barrel of a potential currency crisis. The United Kingdom borrowed heavily during the pandemic, but investors may soon turn up their noses at lending the country more money if it tumbles into a so-called stagflation cycle in which the economy shrinks yet prices continue to surge. On Wednesday, she ruled out extending the £5 billion tax former finance minister Rishi Sunak introduced in May on UK oil and gas producers to fund an earlier energy relief package.

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History of this topic

Sterling slides for a fourth day amid bond market turmoil
5 days, 1 hour ago

Sterling slides for a fourth day amid bond market turmoil

Live Mint  

By Greta Rosen Fondahn Jan 10 - Sterling continued its slide on Friday, its fourth day of falls, as elevated global bond yields kept the currency under pressure. Global borrowing costs have soared amid concerns about rising inflation, reduced chances of a drop in interest rates, and uncertainty over how U.S. President-elect Donald Trump will conduct foreign or economic policy. …

Global stocks tumble and pound weakens as investors digest UK Budget
2 months, 2 weeks ago

Global stocks tumble and pound weakens as investors digest UK Budget

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Top global markets tumbled into …

UK inflation stays at 10% as bread rises at record clip. Here’s why it’s proving hard to beat
1 year, 8 months ago

UK inflation stays at 10% as bread rises at record clip. Here’s why it’s proving hard to beat

CNN  

London CNN — UK inflation remained above 10% in March, far higher than in the United States and Europe, as bread prices rose at a record pace. “Energy has been the UK’s Achilles’ heel in terms of inflation for the last year,” said Martin Beck, chief economic adviser to the EY ITEM Club. Because the UK has been exposed to …

As Rishi Sunak assumes PM's office, Pound seems to be on recovery path
2 years, 2 months ago

As Rishi Sunak assumes PM's office, Pound seems to be on recovery path

India Today  

Hours after Rishi Sonak became Britain's third Prime Minister in two months on Tuesday, the British Pound witnessed a surge on improved risk sentiment and the dollar dipped to a three-week low. The announcement of former British PM Liz Truss's tax-cut policy sent the Pound Sterling crashing to a record low against the US Dollar last month. "Beyond a brief …

Pound claws back losses after fall to $1.10 following Liz Truss's resignation
2 years, 2 months ago

Pound claws back losses after fall to $1.10 following Liz Truss's resignation

Daily Mail  

The pound - which briefly rallied after Liz Truss resigned - has plunged to its lowest level all week as Boris Johnson was floated as her possible replacement. The pound clawed back most of its losses after falling sharply on Friday morning following Liz Truss's resignation on Thursday It was a grim sight for those looking at the pound to …

British pound falls after Bank of England chief rules out extending 'clearly temporary' help
2 years, 3 months ago

British pound falls after Bank of England chief rules out extending 'clearly temporary' help

ABC  

Britain's economy faced new shocks after the Bank of England ruled out extending an emergency debt-buying plan – and the government appeared to blame the independent central bank for the U.K.'s economic turmoil. Key points: Bank of England says it will not extend an emergency debt-buying plan introduced last month The bank's governor, Andrew Bailey, says the program will end …

Pound rebounds to levels seen before mini-budget chaos as Chancellor U-turns
2 years, 3 months ago

Pound rebounds to levels seen before mini-budget chaos as Chancellor U-turns

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The pound has bounced back …

Sterling turns positive as dollar wavers and PM Truss defends economic plans
2 years, 3 months ago

Sterling turns positive as dollar wavers and PM Truss defends economic plans

The Hindu  

Sterling fell as much as 1% on Thursday before cutting losses and turning positive as the dollar wavered and British Prime Minister Liz Truss defended the government's economic plans. Truss said big tax cuts were the right path for Britain and refused to consider reversing the so-called "mini budget" laid out last week, which triggered chaos in markets. Adam Cole, …

British pound stabilizes, but turmoil still roils UK economy
2 years, 3 months ago

British pound stabilizes, but turmoil still roils UK economy

Associated Press  

LONDON — The British pound stabilized Tuesday as U.K. authorities tried to ease investor concerns after the biggest tax cuts in 50 years sent the currency tumbling to a record low and prompted some businesses to predict a devastating combination of a weak currency and rising interest rates. Late Monday, the central bank said it was “closely monitoring’’ financial markets …

The British pound has taken a tumble. What’s the impact?
2 years, 3 months ago

The British pound has taken a tumble. What’s the impact?

Associated Press  

LONDON — The pound is taking a pounding. “There’s every chance that a falling pound will make life more expensive,” said Sarah Coles, senior personal finance analyst at financial services firm Hargreaves Lansdown. “For anyone whose budget was already stretched to breaking point, this will mean even more pain at the tills.” Finance minister Kwasi Kwarteng hopes that big tax …

British pound, bonds roiled as tax-cut plans spook investors
2 years, 3 months ago

British pound, bonds roiled as tax-cut plans spook investors

Live Mint  

The selloff in U.K. financial markets accelerated on investors’ worries that the country’s largest tax cuts in decades would spark higher inflation and put government finances at risk. The market turbulence is shaping up as a major challenge for new U.K. Prime Minister Liz Truss, whose government has taken a sharp U-turn on economic policy compared with previous Conservative governments …

Tax cut plans pull British pound to four decade lows
2 years, 3 months ago

Tax cut plans pull British pound to four decade lows

The Hindu  

The British pound has resumed a slide against the U.S. dollar that picked up pace last week after the U.K.’s new government outlined plans to cut taxes and boost spending. Treasury chief Kwasi Kwarteng announced the sweeping tax cuts that he said would boost economic growth and generate increased revenue without introducing corresponding spending reductions. The news triggered the pound’s …

British pound plunges to new low against dollar as tax cuts spark concern
2 years, 3 months ago

British pound plunges to new low against dollar as tax cuts spark concern

LA Times  

The British pound has fallen dramatically against the dollar amid concern over the government’s plans to cut taxes and boost spending. The pound fell to an all-time low against the dollar early Monday after Britain’s new finance minister unveiled a sweeping package of tax cuts, fueling concerns about the government’s economic policy as the country teeters on the brink of …

British pound plummets to record low against the dollar
2 years, 3 months ago

British pound plummets to record low against the dollar

CNN  

CNN Business — The British pound crashed to a record low against the US dollar on Monday on growing fears about the stability of UK government finances. The currency slump follows British Chancellor of the Exchequer Kwasi Kwarteng’s announcement on Friday that the United Kingdom would implement the biggest tax cuts in 50 years at the same time as boosting …

British pound plummets to record low against the dollar
2 years, 3 months ago

British pound plummets to record low against the dollar

CNN  

CNN Business — The British pound crashed to a record low against the US dollar on Monday on growing fears about the stability of UK government finances. The currency slump follows British Chancellor of the Exchequer Kwasi Kwarteng’s announcement on Friday that the United Kingdom would implement the biggest tax cuts in 50 years at the same time as boosting …

British pound hits a 37-year low as UK economy skids
2 years, 3 months ago

British pound hits a 37-year low as UK economy skids

CNN  

London CNN Business — The British pound slumped to a 37-year low on Friday after new data showed that shoppers are pulling back spending as inflation squeezes household budgets, underscoring fears that the economy may already be shrinking. The currency fell below $1.14, its lowest since 1985, after the Office for National Statistics said that retail sales in August dropped …

Bank of England urged to protect sinking pound with higher interest rates
2 years, 6 months ago

Bank of England urged to protect sinking pound with higher interest rates

The Telegraph  

The Bank of England must prop up the pound with a rapid increase in interest rates or risk a further surge in inflation, a senior policymaker has warned. Catherine Mann, a member of the Bank's rate-setting Monetary Policy Committee, said that Britain is falling behind the US after the Federal Reserve embarked on a vigorous round of rate increases. Ms …

Pound plunges to two-year low against dollar on fears for UK economy
2 years, 7 months ago

Pound plunges to two-year low against dollar on fears for UK economy

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

Andrew Bailey warns of massive downturn as pound suffers biggest fall in two years
2 years, 8 months ago

Andrew Bailey warns of massive downturn as pound suffers biggest fall in two years

The Telegraph  

The pound suffered its steepest fall since the onset of the Covid crisis on Thursday as traders panicked after the Bank of England warned over a recession. Sterling fell as much as 2.2pc against the dollar to a near-two year low of $1.23 as analysts warned that a “toxic mix” of high inflation and stalling growth threatens to push the …

Brexit: Pound heading for a crash if Britain fails to get a trade deal
4 years, 1 month ago

Brexit: Pound heading for a crash if Britain fails to get a trade deal

CNN  

London CNN Business — The British pound could plunge by 10% or more if the United Kingdom does not finalize a trade deal with the European Union this weekend. Currency traders who once assumed a deal would be completed before a Brexit transition period ends on January 1 will be nervously watching events over the next 72 hours after British …

UK currency volatile as investors try to gauge Brexit risks
5 years, 4 months ago

UK currency volatile as investors try to gauge Brexit risks

Associated Press  

LONDON — The pound on Tuesday touched its lowest level against the dollar since 1985, excluding a brief “flash crash” in 2016 that may have been caused by technical glitches, as international investors fret over a political showdown over Brexit this week. Brexit is facing a crucial few days as lawmakers challenge Prime Minister Boris Johnson’s insistence that the U.K. …

Pound wobbles after Johnson reveals plan to prorogue Parliament: as it happened
5 years, 4 months ago

Pound wobbles after Johnson reveals plan to prorogue Parliament: as it happened

The Telegraph  

The pound looked like it was going to take a star turn today, but after a steady comeback, it managed to reach the session’s end less than 0.5pc down against the dollar and the euro — far from a disastrous day given the sounds coming from Westminster. In the grander scheme of things, the currency’s drop still appears pretty steady, …

Pound hits fresh two-year low as Brexit fears spook investors
5 years, 5 months ago

Pound hits fresh two-year low as Brexit fears spook investors

CNN  

London CNN Business — The pound has slumped to its weakest level in more than two years. Prime Minister Boris Johnson has used his first days in office to double down on his threat to leave the European Union on October 31 “no matter what.” Now, fears that Britain will leave the European Union without an agreement in place to …

Boris Johnson’s Brexit plan drives pound lower
5 years, 5 months ago

Boris Johnson’s Brexit plan drives pound lower

CNN  

London CNN Business — Britain is moving closer to the nightmare Brexit scenario businesses have long feared. A major lobby group warned that a disorderly Brexit would disrupt almost every part of the UK economy, and French carmaker PSA said new trade barriers could doom its factory near Liverpool. Michael Gove, the government minister Johnson has put in charge of …

Could the pound crash to one dollar? A Boris Johnson Brexit might make it happen
5 years, 5 months ago

Could the pound crash to one dollar? A Boris Johnson Brexit might make it happen

CNN  

London CNN Business — Could the value of the pound drop to just one US dollar? Johnson has said the United Kingdom must leave the European Union by October 31 with or without an agreement to protect trade with the country’s biggest export market. “It’s going to be a long and painful grind all the way to October 31.” Analysts …

ALEX BRUMMER: Britain takes a pounding
5 years, 5 months ago

ALEX BRUMMER: Britain takes a pounding

Daily Mail  

The dilemma for Bank of England interest rate-setters as they head towards the August meeting and release of the Inflation Report gets tougher by the day. The sharp fall in sterling, as Britain's two prospective prime ministers harden their negotiating positions on Brexit, risks a disorderly few months ahead with the pound moving towards parity against the euro and the …

British pound falls amid Brexit fears
5 years, 10 months ago

British pound falls amid Brexit fears

CNN  

London CNN Business — The British pound trimmed some of the losses it suffered during volatile trading on Tuesday after UK lawmakers voted down the latest version of Prime Minister Theresa May’s deal on Brexit. Speaking to lawmakers just minutes after the vote, May said the default scenario is leaving the European Union without a deal on March 29. May …

Pound: Sterling falls sharply as risk of chaotic Brexit rises
6 years, 2 months ago

Pound: Sterling falls sharply as risk of chaotic Brexit rises

CNN  

London CNN Business — The British pound dropped sharply on Thursday after two key UK government ministers resigned, plunging the Brexit process into deep uncertainty and hiking the risk of a chaotic rupture with the European Union. Brexit Secretary Dominic Raab said in a statement on Thursday that he “cannot in good conscience support the terms proposed for our deal” …

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