Skip to content

Pound Inches Closer Toward Dollar Parity With Fresh 37-Year Low

  • Sterling drops below $1.10 handle and bearish wagers pick up
  • UK bonds plunge at the prospect of more fiscal stimulus
Video player cover image
Summers Calls UK Fiscal Policy 'Naive Wishful Thinking'
Updated on

The pound plunged by the most since March 2020 and hit the lowest in 37 years against the dollar, as the UK government unveiled a fiscal stimulus package that threatens to fuel inflation and stoke the nation’s ballooning debt.

Sterling fell by as much as 3.7% to $1.0840 on Friday, triggering talk among investors about parity with the euro and the dollar and drawing comparisons with emerging markets as the country’s bonds also tumbled.