The world’s oldest fiat currency, the British pound sterling, hit an all-time low against the U.S. dollar shortly after 1 a.m. (ET) on Monday morning. At the time, the pound touched a nominal US$1.0327 per unit, but retreated to 1.0775 against the greenback at 11am on Monday.
The pound sank to $1.0327 against the greenback but managed to bounce back to $1.0826.
On Monday, September 26, 2022, the British Pound Sterling hit an all-time low against the US Dollar. The pound’s losses followed the euro’s move to a 20-year low against the greenback on Friday. At the same time last Friday, the US Dollar Currency Index (DXY) hit a 20-year high and at the time of writing, the DXY is on the verge of 113.618.
The British currency fell 4.85 percent to a low of US$1.0327 as Asian markets rallied. After a rebound, the pound is up 0.12% to $1.0826 today. The euro fell 0.51%, the Japanese yen lost 0.53%, and the Canadian dollar fell 0.71% on Monday.
There were a number of factors driving the pound sterling lower, and the gap between the Ukraine-Russia war and central bank rate hikes around the world put it under pressure. The pound took a nosedive in the first quarter of 2022, just as several fiat currencies did at the start of the Ukraine-Russia war.
In addition, the United Kingdom and the European Union (EU) have strengthened the sanctions imposed on Russian energy suppliers in the West, causing an energy crisis. Meanwhile, the Bank of England raised its rate by 50 basis points (bps) as the Federal Reserve began raising the benchmark federal funds rate significantly. The Bank of England rate is currently 2.25% and the UK Central Bank plans to adjust it again on November 3, 2022.
Meanwhile, FTX co-founder Sam Bankman-Fried explained on Monday how the world would see things differently if everything wasn’t measured in US dollars. “Boy thinks differently about the world of crypto price movements [if] Measure baskets of world currencies, not just the US dollar.” Sil Bankman-Fried He tweeted..
What do you think of the British pound falling to an all-time low at 1am this morning? Let us know what you think about this in the comments section below.
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