The British pound crashed to a record low against the US dollar on Monday on growing fears about the stability of UK government finances.
for the first time since 1998 to prop up the yen when it hit 145. That should make it more costly to buy foreign currencies via derivatives, which might slow the pace of the yuan's decline. "Should there be any escalation to the war in Ukraine ... Last Thursday, the Japanese central bank [SHCOMP](https://money.cnn.com/data/world_markets/se_composite/?source=story_quote_link)) It has lost nearly 21% so far this year, compared with a fall of 15% in the euro. The offshore yuan fell 0.4%. [N225](https://money.cnn.com/data/world_markets/nikkei225/?source=story_quote_link)) [KOSPI](https://money.cnn.com/data/world_markets/kospi/?source=story_quote_link)) [intervened in the currency market](https://edition.cnn.com/2022/09/22/investing/japan-yen-intervention/index.html) Investors are monitoring what would be the most far-right government since the fascist era of Benito Mussolini, which has raised concerns about cohesion within the European Union. [sold off on Friday](https://edition.cnn.com/2022/09/23/investing/dow-stock-market-today/index.html)
Reaching 1 GBP = $1.04, the pound has crash-landed, marking a record low against the U.S. dollar following the new prime minister's budget announcements.
Due to the pound devaluing, all cryptocurrency tokens appear to rise in value in Cobie’s home country, the United Kingdom. Inflation in the United Kingdom is at record levels for the century, [hitting double digits last month](https://cointelegraph.com/news/uk-hits-double-digit-inflation-for-the-first-time-in-40-years) for the first time in 40 years. [announced](https://www.gov.uk/government/news/chancellor-announces-new-growth-plan-with-biggest-package-of-tax-cuts-in-generations). In numbers, Bitcoin is down 50% against the pound this year but up 2% today and 9% over the past week. In a tweet, Angel Raynor criticized the Conservative Party or 'Tories,' blaming their management of the economy for the fall in the pound. The pound has been on a steady decline against the USD since 2007 and the subsequent financial crisis.
Sharp fluctuations of major currencies inject new uncertainty into fraught global economic outlook.
“Of course, central banks in other jurisdictions such as the UK have also been raising interest rates, and the eurozone is planning to do likewise. Europe is on the verge of a recession and the UK’s new government has stirred crisis talk with its fiscal stimulus adding to its current account deficit.” Higher energy prices will in turn push up the cost of other goods and services. Japan is the only G10 country not to raise interest rates. The issue with aggressively large interest rate hikes is that it’s likely to push the economy into a recession, which no one wants to see.” “These countries will either have to tax their economies more, issue inflationary local money or simply borrow more. “The US allies are also having serious struggles. “So with the war in Ukraine, economic and political problems in Europe, high inflation, etc, it is not surprising investors are turning to the US dollar.” “The US dollar has always been seen as a safe haven for investors because the US is such a strong and large economy, so if there is global uncertainty, it’s always a safe bet to hold US dollars because it retains value well,” Tien said. The first is confidence in the US economy relative to its peers. “The new prime minister’s economic policy of lowering taxes on the wealthy is not too popular, and the consensus is that it will not work in stimulating the economy.” As the British pound plummets in value, the US dollar is flying high.
The UK central bank also said it would “not hesitate to change interest rates” to rein in inflation, but stopped short of an emergency interest rate increase to ...
Gas and food prices are expected to rise after the British pound's sharp decline, though the fall could also draw more tourists to the country.
In July, the euro [sank to even with the dollar](https://www.washingtonpost.com/business/2022/07/12/euro-us-dollar-parity/?itid=lk_inline_manual_5) for the first time in nearly two decades. [voted to exit](https://www.washingtonpost.com/business/economy/britains-exit-from-eu-sends-global-economies-into-tailspin/2016/06/24/b898124a-3a3f-11e6-8f7c-d4c723a2becb_story.html?itid=lk_inline_manual_5) the European Union in 2016. [to a record low](https://www.washingtonpost.com/world/2022/09/26/uk-gbp-pound-falls-usd-dollar/?utm_source=twitter&utm_medium=social&utm_campaign=wp_main&itid=lk_inline_manual_2) against the soaring dollar on Monday, spurring concerns of even higher inflation and prompting social media users to share defeatist memes about the world’s fifth-largest economy.