Pound drops against euro, dollar on recession fears

Tuesday, 30. August 2022 17:02

The British pound decreased against the euro and the United States dollar on Tuesday as traders interpreted the latest US data as a sign that the Federal Reserve will remain on course to increase interest rates and that the fight against inflation will require rates to remain high for an extended period.

Earlier this month, the Bank of England predicted a five-quarter-long recession that will impact the United Kingdom economy from the final trimester of 2022.

The British currency fell 0.69% against the greenback, trading at 1.16252 at 4:59 pm CET. The euro went up 0.59% compared to the sterling, going for 0.85888 at 5 pm CET.

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Author:
Baha Breaking News (BBN) / MS