Connect with us

Hi, what are you looking for?

Top Stories

Economy

Pound hits fresh 37-year low against dollar

The pound has hit a new 37-year low against the dollar after Russia accused the West of “nuclear blackmail” raising fears the Ukraine war could escalate.

The comments unnerved traders, pushing them towards safer investments such as the dollar.

The pound briefly touched $1.13040 – its lowest level since 1985 – before regaining ground.

The fall also came after UK figures showed borrowing costs hit a fresh record for August as inflation soared.

In a televised address, the Russian president said he had signed a decree on partial mobilisation – the first since World War Two – as he seeks to send up to 300,000 more soldiers into battle.

He also accused the West of wanting to destroy Russia, adding the country had “lots of weapons to reply”.

The comments rattled investors who bought the dollar, gold and bonds, all of which are seen as less risky investments.

Traders in sterling – which has been at low levels for weeks – were also looking ahead to a widely anticipated interest rate rise by the Federal Reserve on Wednesday.

The US central bank has already raised interest rates four times this year to battle inflation. The Bank of England (BoE) is meanwhile expected to put up interest rates again on Thursday.

Raising rates increases the cost of borrowing and encourages people to spend less, which can cool rising prices. However, central banks face a tough balancing act because higher rates may also slow the economy.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Editor's Pick

The Board of Investments (BoI) has cleared Sinoma Energy Conservation (Cebu) Waste Heat Recovery Co. Inc. to serve as the operator of a 4.5-megawatt...

Forex

At a time when the world is battling to get through the dreaded coronavirus pandemic, protective face masks have come out to be the...

Economy

Few individuals can resist the temptation to try before they buy; therefore, it was only a matter of time until online casinos realized this...

Editor's Pick

BEWARE the “lessons of history” as drawn by charlatans, ignoramuses, or tyrants, for they will be daft, wrong, and possibly disastrous. The self-serving amateur...

Disclaimer: SecretsOfRichDads.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Secrets Of Richdads. All Rights Reserved.