Due to worries about a significant downturn in the UK economy and rising inflation, investors rushed to sell the British currency, causing the pound sterling to have its worst monthly performance against the US dollar since late 2016 and its worst monthly performance versus the euro since mid-2021.
Sterling had lost 0. 28% of its value by 18:20 GMT, or around 5%, and was on pace to conclude the month of August with a loss worse than its 4. 3% loss in April.
The need for Covid-19 hit the markets on Monday, as the pound fell to its lowest point since March 2020.
The British pound experienced its worst monthly performance since April 2021 as it lost 0. 64% of its value against the euro, falling to 86. 46 pence. This would mean that the month would end with a loss of 3%.
The British economy is performing poorly, and the markets are extremely concerned about this, as evidenced by the pound’s weakness against the euro. These concerns are fueled by worries about a scarcity of gas supply and rapid increases in energy prices.
British government bonds are on track to experience their biggest monthly fall since 1994 as a result of a rapid sell-off. Consumers’ incomes are already being squeezed by the country’s high cost of living due to inflation, which is currently over 10%.
When compared to the dollar, sterling has its worst monthly performance since 2016.
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