The British pound, the world’s oldest fiat currency, fell to an all-time low against the US dollar shortly after 1:00 am ET Monday. At that time, the pound hit 1.0327 per unit in nominal US dollars, but rebounded to 1.0775 against the greenback by 11 a.m. Monday.
The pound sank to $1.0327 against the greenback, but managed to rebound to $1.0826
On Monday, September 26, 2022, the British pound hit an all-time low against the US dollar. The pound’s decline followed the euro’s 20-year low against the U.S. dollar on Friday. At the same time last Friday, the U.S. Dollar Currency Index (DXY) hit a 20-year high, and as of this writingandare coasting; the DXY is coasting at 113.618; the DXY
is at 113.618; the DXY
The British currency plunged 4.85% against the pound sterling 1.0327 nominal dollar amidst a booming Asian market. After the rebound, the pound was 0.12% higher today at $1.0826 as many fiat currencies lost money against the dollar. The euro was down 0.51%, the Japanese yen was down 0.53%, and the Canadian dollar was down 0.71%.
There are a number of factors pushing the pound down, but the major pressure comes from the Ukraine-Russia war and the discrepancy between central bank rate hikes around the world. The pound began to plunge in the first quarter of 2022, just as many fiat currencies did at the start of the Ukraine-Russia war.
In addition, the United Kingdom and the European Union began to feel the effects of the energy crisis stemming from the West’s increased sanctions against Russian energy suppliers. Meanwhile, as the Federal Reserve began aggressively raising its benchmark Federal Funds rate, the Bank of England raised it by 50 basis points (43). Currently, the Bank of England rate is at 2.25%, and the U.K. central bank is scheduled to re-vote on November 3, 2022.
Meanwhile, Sam Bankman-Fried, co-founder of FTX, explained on Monday how the world would see things differently if everything were not measured in US dollars.” Boy would the world think differently about crypto price moves [if] they measured it vs world currency baskets instead of just USD,” Bankman-Fried tweeted.
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