A slump in the value of sterling made headline news in October when the pound plunged to its lowest level against the US dollar for 50 years.
Other currencies have also suffered a similar fate against the greenback. For example, the euro is down in value by 16% over the last year, while the Japanese yen has taken a 23% hit against the dollar over the same period.
There have also been falls for the Chinese Renminbi and Canadian dollar, down 12% and 7% respectively over the past year.
At home, September’s mini-Budget, with its unfunded tax cuts, sent the pound crashing as investors sought refuge in the relative safety of the dollar.
Although Chancellor Jeremy Hunt’s subsequent reversal of these proposed cuts restored some confidence in the pound, the current volatility in exchange rates looks set to continue for the foreseeable future.
With the US currency towering over many of its global rivals,…
