The world’s oldest fiat currency, the British pound, hit an all-time low against the U.S. dollar Monday morning. The pound touched 1.0327 nominal dollars per unit, but rebounded against the greenback to 1.0775 on the day.
The pound sinks against the greenback to $1.0327 but manages to rebound to $1.0826.
On Monday, September 26, 2022, the British pound hit its all-time low against the U.S. dollar. The pound’s losses follow the euro’s fall to a 20-year low against the greenback on Friday. At the same time last Friday, the U.S. Dollar Currency Index (DXY) hit a 20-year high and currently has hit a low, DXY is holding at 113.618.
Sterling at $1.0327 nominal saw the UK currency fall 4.85%. After the rebound, the pound is up 0.12% today at $1.0826 apiece, as a large number of fiat currencies have posted losses against the greenback. The euro is down 0.51%, the Japanese yen lost 0.53%, and the Canadian dollar is down 0.71% on Monday.
A number of factors have pushed the British pound lower, and much of the pressure has come from the Ukraine-Russia war and the divergence in central bank rate hikes around the world. The pound began to fall in the first quarter of 2022, as did a number of fiat currencies at the start of the Ukraine-Russia war.
In addition, the United Kingdom and the European Union (EU) began to feel the effects of an energy crisis stemming from the West’s tightening of sanctions against Russian energy suppliers. Meanwhile, as the Federal Reserve began to aggressively raise the benchmark federal funds rate, the Bank of England raised its rate by 50 basis points (bps). Currently, the Bank of England rate is 2.25 percent and the British central bank plans to reset it on November 3, 2022.
boy would the world thinking differently about crypto price moves it they measured it vs world currency baskets instead of just USD
– SBF (@SBF_FTX) September 26, 2022
Meanwhile, FTX co-founder Sam Bankman-Fried explained Monday how the world would look differently if everything wasn’t measured in U.S. dollars. “Boy, would the world think differently about crypto-currency price movements. If they measured them against baskets of global currencies instead of just the US dollar“, said Bankman-Fried.