Pound hits 31-year low against US dollar – business live

Discussion in 'Market News' started by Lily, Oct 4, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    All the latest economic and financial news, including the International Monetary Fund’s latest World Economic Outlook

    7.58am BST

    Newsflash: the pound has hit a new 31-year low against the US dollar.

    It has shed 0.5% in early trading in London, dropping to $1.2778.

    Sterling falls to a 31-year low of $1.2775. pic.twitter.com/2mVzAbuhEE

    The Tory party conference is turning into a sell for the pound, as FX traders get spooked by May’s apparent sanguine attitude to leaving the single market, preferring to focus on immigration and UK sovereignty rather than the economic fallout of Brexit.

    Phillip Hammond, the UK’s new Chancellor, didn’t help the pound either when he suggested that George Osborne’s fiscal rules will be abandoned and government spending increased. This is designed to cushion some of the blow from the UK’s departure from the European Union. However, it is likely to weigh on the UK’s already large budget deficit, which is another blow to the pound at the start of the new quarter.

    7.44am BST

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    The health of Britain’s economy will probably dominate the agenda today, as the UK faces up to the prospect of exiting the EU by spring 2019.

    The construction sector has been a significant underperformer in the last three to four months, posting sub 50 readings every month since June. Expectations are for a reading of 49.1, slightly down from 49.2 in August.

    Tuesday 9:00 a.m. EDT: Launch of the World Economic Outlook (#WEO). Follow the press conference live: https://t.co/PaKZ3KFPdp

    Continue reading...

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