Wednesday, October 12, 2016
British Pound Drops to at Least a 168-Year Low
In the race to the bottom, the British Pound has taken the lead.
According to a trade-weighted index measuring sterling against a basket of its trading peers, the pound has now slumped to its lowest on record, stretching beyond the introduction of free-floating exchange rates in the 1970s and all the way back to the mid-1800s, reports The Financial Times.
The pound’s effective exchange rate, which is weighted to reflect the UK’s trade flows, hit a low of 73.38 on Tuesday – weaker than the depths hit during the financial crisis, Britain’s ejection from the European Rate Mechanism in 1992, and its decision to leave the Gold Standard in the 1930s.
at 11:53:00 AM