Pound Dives and Inflation Bets Hit a Record on UK Energy Crisis
- One-year inflation swaps are nearing 13% as gas prices surge
- Pound sinks to weakest since March 2020 in global selloff
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The UK energy crisis is sparking another wave of bets on hotter inflation and weakening the pound.
The British currency fell to $1.1757, the lowest since March 2020. One-year inflation swaps linked to the retail price index -- a measure of how fast traders see consumer costs rising -- soared more than 1 percentage point to 12.7%, breaking a previous record set last week.