Not Just Your Dollar, Sterling Also Gets Pounded
Coverage of the dollar devastation keeps pouring in… but, another interesting story unfolding is in the pound, which actually hit a four-month low versus the dollar on Monday. To put this into perspective, there aren’t many major currencies hitting lows right now against such a weakened dollar.
Like the US, the UK economy has been heavily dependent on the financial services sector, is also running a deep fiscal deficit, and is keeping interest rates extremely low. Worse still, the UK treasury is now projecting its net debt to reach 80 percent of GDP by roughly 2015.
The pound is also at new 24-year lows versus the New Zealand and Australian dollars. It’s probably not the nicest thing to say in a situation like this… but misery does love company.
The Wall Street Journal has more details in its article on the sterling taking a beating.