Cameron Evokes Black Wednesday as Pound Weakens 7%: U.K. Credit
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The pound is bearing the brunt of a loss of confidence in the economic policies of U.K. Prime Minister David Cameron.
Sterling has weakened around 7 percent against the dollar this year. In the week through Sept. 16, 1992, when investor George Soros earned $1 billion by helping to force the pound out of the exchange-rate system that preceded the euro, sterling dropped by 9.5 percent. Black Wednesday, as the day became known, damaged the Conservatives’ reputation for economic competence. Economists and investors say a similar judgment faces the present Tory-led government unless it gets the economy moving. Gilts are among the world’s worst performers this year.