The world’s oldest fiat currency, the British pound sterling, slid to an all-time low against the U.S. dollar at a little after 1 a.m. (ET) Monday morning. The pound was trading at 1.0327 U.S. dollar per unit. However, it recovered against the greenback by Monday morning to 1.0775.
Greenback drops to $1.0327 as Pound sinks, but it manages to rebound to $1.0826
The British pound sterling fell to an all-time low of.22% against the U.S. Dollar on Monday 26 September 2022. The pound’s losses follow the euro sliding to a 20-year low against the Greenback on Friday. Last Friday saw the U.S. Dollar Currency Index reach a high of 20 years. DXY currently sits at 113.618.
While Asian markets were in full swing the pound sterling 1.0327 nominal U.S. dollar low saw the United Kingdom’s currency plunge by 4.85%. Today, the pound rose 0.12% to $1.0826/unit, following a rebound. This is because a large number of fiat currencies experienced losses against the greenback. Euro is at a loss of 0.51%. Japanese yen is off 0.53%. Canadian dollar has dropped 0.71% since Monday.
There’s been a number of factors pressing the pound sterling down and a great deal of pressure stems from the Ukraine-Russia war and the discrepancies between central bank rate hikes across the globe. The first quarter 2022 saw the pound begin to fall, along with a variety of fiat currencies that were affected by the outbreak of war in Ukraine.
Additionally, both the United Kingdom of Great Britain (UK) as well the European Union (EU), began to feel the impact of the energy crisis that resulted from West-imposed sanctions against Russian suppliers. The Federal Reserve was aggressively raising the benchmark federal funds rates. Meanwhile, the Bank of England increased the rate by 50 basis point (bps) as a result. Currently, the Bank of England’s rate is 2.25% and the U.K. central bank plans to readdress it 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 U.S. dollars. “Boy would the world thinking differently about crypto price moves [if] they measured it vs world currency baskets instead of just USD,” Bankman-Fried tweeted.
What do you think about the British pound’s decline early this morning dropping to an all-time low at 1 a.m.? Comment below and let us know how you feel about the subject.
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