The British pound fell to a 37-year low against the US dollar and a 17-month low against the euro on Friday, after weaker-than-expected retail sales data heightened concerns over the health of the UK economy. United.
The pound fell more than 1% against the dollar to 1.1351, the lowest level since 1985, and its decline accelerated after breaking through last week’s 37-year low.
The euro climbed to 87.66 pence, the highest since February 2021, and last time climbed 0.39% to 97.52 pence.
Retail sales volumes fell 1.6% month-on-month in August, the Office for National Statistics said Friday, the largest decline since December 2021 and worst of all predictions in a Reuters poll of economists who indicated a decrease of 0.5%.
“The overwhelming scenario of everything that is happening weighs on the pound as the UK manages these huge external deficits and the risks surrounding the new prime minister’s policies add to this,” said John Hardy, head of FX strategy at Saxo. Bank.
The new British leader announced, Liz TerraceLast week, it announced a two-year cap on energy bills to cushion the economic shock of the war in Ukraine, with measures that could cost the country over £ 100 billion ($ 115 billion).
British Chancellor of the Exchequer Kwasi Quarting will release a financial statement this month to explain how the plan will be funded and should also explain how the tax cuts promised by Truss during his campaign to lead the Conservative Party will be implemented.
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