International Finance: Pound back where it was before Kwarteng shock as traders rethink

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 36 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 84%

Business News News

Business Business Latest News,Business Business Headlines

The pound has erased its losses since Kwasi Kwarteng began his speech last Friday announcing sweeping UK tax cuts after a roller-coaster week that saw the currency slide to a record low.

The sterling has rallied almost 8% from its all-time low of of $1.0350 set early on Monday to trade at $1.1168 in early Asian trade – about the same level it was at before the Chancellor of the Exchequer began speaking in parliament about the government’s mini-budget almost a week ago. The Bank of England’s bond purchases and the stabilisation of gilts yields were a big factor in soothing investor fears, strategists say.

“It’s a reminder that currencies are driven by a myriad of factors – it’s clearly not due to any improvement in the outlook for the UK,” said Sean Callow, strategist at Westpac Banking Corp in Sydney. “The pound does at least have much stronger yield support now. Loose fiscal policy is often supportive for currencies to the extent that it can force tighter monetary policy.”

Sterling closed 3.6% lower last Friday as markets digested the reduction of levies on rich households and companies in a bid to boost economic growth. The currency then tumbled as much as 4.7% in early Monday trade amid concern the proposals estimated at about £161-billion over a five-year period would

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Interest Rates however are still subject to the largesse of the central bank.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Ghana negotiations with IMF to be fast-tracked: finance minister - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.Ghana’s negotiations with the International Monetary Fund over a rescue package will be fast-tracked, the country’s Finance Minister Ken Ofori-Atta said on Wednesday. Nothing good is coming from this, more woes for Ghana Being the head of the home isn't easy, you are expected to provide for the home, I lost my job during the pandemic and relied on the little money I had,things were hard until I met JamesAlderson0 and started Bitcoin trading, I earned R800,000 in 3 weeks thanks JamesAlderson0 I was scammed through Bitcoin couple of months ago, I started hating Bitcoin until I was introduced to Allison_Grillo, and I gave Bitcoin trading another try, I successfully withdrew $35,000 after two weeks of trading, am so grateful Allison_Grillo thank you
Source: SABCNews - 🏆 37. / 51 Read more »

Wiocc secures R540-million equity investment for expansionWiocc Group has secured a $30-million equity investment from the International Finance Corp as it ramps up investment in fibre networks and data centres.
Source: TechCentral - 🏆 8. / 71 Read more »