AGL 38.75 Increased By ▲ 0.05 (0.13%)
AIRLINK 137.10 Decreased By ▼ -0.78 (-0.57%)
BOP 5.37 Decreased By ▼ -0.06 (-1.1%)
CNERGY 3.87 Increased By ▲ 0.09 (2.38%)
DCL 8.09 Increased By ▲ 0.35 (4.52%)
DFML 45.74 Increased By ▲ 0.12 (0.26%)
DGKC 83.30 Increased By ▲ 2.80 (3.48%)
FCCL 30.27 Increased By ▲ 0.72 (2.44%)
FFBL 57.60 Increased By ▲ 1.80 (3.23%)
FFL 9.14 Increased By ▲ 0.05 (0.55%)
HUBC 106.85 Increased By ▲ 1.25 (1.18%)
HUMNL 14.30 Increased By ▲ 0.25 (1.78%)
KEL 4.68 Increased By ▲ 0.38 (8.84%)
KOSM 7.98 Decreased By ▼ -0.25 (-3.04%)
MLCF 38.93 Increased By ▲ 0.95 (2.5%)
NBP 67.60 Decreased By ▼ -1.63 (-2.35%)
OGDC 168.99 Increased By ▲ 1.99 (1.19%)
PAEL 25.38 Increased By ▲ 0.18 (0.71%)
PIBTL 5.94 Decreased By ▼ -0.84 (-12.39%)
PPL 131.00 Increased By ▲ 0.65 (0.5%)
PRL 23.76 No Change ▼ 0.00 (0%)
PTC 15.75 Increased By ▲ 0.05 (0.32%)
SEARL 64.75 Increased By ▲ 3.27 (5.32%)
TELE 7.40 Increased By ▲ 0.36 (5.11%)
TOMCL 36.09 Decreased By ▼ -0.01 (-0.03%)
TPLP 7.86 Increased By ▲ 0.05 (0.64%)
TREET 14.93 Decreased By ▼ -0.22 (-1.45%)
TRG 45.25 Increased By ▲ 0.36 (0.8%)
UNITY 25.83 Increased By ▲ 0.32 (1.25%)
WTL 1.29 Increased By ▲ 0.02 (1.57%)
BR100 9,347 Increased By 123.7 (1.34%)
BR30 28,113 Increased By 346.6 (1.25%)
KSE100 87,195 Increased By 728 (0.84%)
KSE30 27,397 Increased By 234 (0.86%)

HONG KONG: The pound fell to a fresh 37-year low against the dollar Friday as traders grow increasingly worried about the economic outlook with central banks ramping up interest rates to fight runaway inflation.

Sterling fell as low as $1.1151 – its weakest since early 1985 – after the Bank of England on Thursday hiked borrowing costs by 50 basis points.

That followed a three-quarter-point lift by the Federal Reserve on Wednesday and a warning of more to come.

The greenback also surged against the euro, with the single currency buying $0.9753, a new 20-year low.

While central banks around the world are hiking borrowing costs, the Fed has adopted a particularly hawkish position, with officials saying they will not back down until inflation – which is at four-decade highs – is tamed, even at the expense of the economy.

Pound falls to lowest since March

Traders are now looking to London, where new finance minister Kwasi Kwarteng is due to announce a mini-budget aimed at supporting households and businesses.

Kwarteng on Thursday said he would scrap a tax on salaries recently implemented by his predecessor Rishi Sunak – and will reveal the cost of the new government’s plan to cap energy bills for households and businesses.

It comes as the Bank of England warns that Britain is slipping into recession, as rocketing fuel and food prices take their toll.

Comments

Comments are closed.