UK Pound Slides To Lowest Level Vs USD Since 1985

The Wall Street Journal reports:

The British pound slid to its lowest level against the U.S. dollar since 1985, a reflection of the U.K.’s dire economic situation. Investors are braced for sterling to weaken even further to a nadir not seen in more than two centuries of trading across the Atlantic.

The pound fell 0.3% in early Monday trading in Asia to $1.1475, according to FactSet. That is the lowest since 1985. Sterling’s descent is in part a side effect of the relentless U.S. dollar rally, which has driven both the euro and Japanese yen to multidecade lows in recent days.

But the problems are also homegrown. The U.K. faces an energy crunch that threatens to leave many households unable to pay their bills this winter. Goldman Sachs warned U.K. inflation could top 22% next year amid spiraling energy costs, one of the starkest projections so far.

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The British pound has fallen to the lowest level since 1985 as the U.K.’s economic pain mounts https://t.co/xL0ohY3ESl

— The Wall Street Journal (@WSJ) September 5, 2022