dChan
Anonymous ID: 8dfbfd March 18, 2020, 11:43 a.m. No.8465139   🗄️.is 🔗kun   >>5351 >>5364 >>5532 >>5556

Pound plunges to its lowest level in over 30 years

 

The pound has fallen to its lowest level against the dollar since 1985, as the spread of the coronavirus pandemic spooks investors.

 

It is currently trading at $1.15, a fall of almost 5% in just one day.

 

It comes as financial markets tumbled again after major stimulus plans failed to quell fears about the economic impact of the virus.

 

The Dow and S&P 500 fell more than 7% in early afternoon, triggering an automatic temporary halt to trade.

 

The FTSE 100 index of top UK firms closed down 4%, with aerospace and travel firms among the hardest hit.

 

The pound's weakness could partly stem from questions over how the UK government plans to pay for the emergency economic measures it has introduced, says Neil Wilson, chief analyst for Markets.com.

 

"This is the worst sustained period of sterling selling that I can recall," he says. "The government's massive fiscal package undoubtedly means more borrowing for the UK economy - how do we pay for all this?"

'Economic fight'

 

UK chancellor Rishi Sunak also revealed a £350bn stimulus package for UK firms, including £330bn of business loan guarantees.

 

It also included aid to cover a business rates holiday and grants for retailers and pubs. Help for airlines is also being considered. Mr Sunak told a news conference: "Never in peacetime have we faced an economic fight like this one."

Concerns about the damage have spurred a widespread sell-off. France's CAC 40 fell more than 6% while Germany's Dax dropped more than 5%.

 

Oil prices also plunged to levels not seen since the early 2000s, as demand contracts sharply, but exporters boost supply. The declines have even hit gold and government debt, which are typically considered less risky assets.

 

Asian markets have fared better than the US and Europe in recent days, but were also lower. Japan's benchmark Nikkei 225 ended Wednesday 1.7% lower, the Hang Seng in Hong Kong fell by 3.3%, and China's Shanghai Composite lost 1.8%.

https://www.bbc.com/news/business-51921922

 

everything else, currency-wise, is dumping because the system is scrambling for dollars to fund themselves-and oil is dying currently under $21/pbl. THEY ARE FUCKED and this is how we get to fungible money. Gonna take a bit this is a needed, albeit, painful step.