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©Reuters. The pound collapses to the lowest level since 1985 against the dollar
London, Sep 7 (.).- The pound sterling fell this Wednesday to its lowest level against the US dollar since 1985, when it was exchanged for 1.1410 dollars, a day after Liz Truss took office as prime minister of the United Kingdom with a program based on cutting taxes and increasing public debt.
The British currency rallied on Tuesday, given the prospect that Truss will announce this week a multi-million dollar package to freeze rising energy bills, but today resumed the downward trend it has seen since early August.
The pound today lost 0.36% against the dollar compared to the previous day and 0.84% against the euro, up to 1.1531 euros.
The price against the dollar peaked on August 10 (1.2210 dollars) and has lost 6.55% since then, and stood at 1.1857 euros on August 25 (2.75% more than now) .
Truss will announce tomorrow its first measures to face the energy crisis. It is expected to freeze the electricity bill at a maximum of 2,500 pounds per year for British households (2,880 euros), above the current 1,970 pounds (2,270 euros), but below the 3,550 pounds expected from October (4,090 euros). ).
The Governor of the Bank of England, Andrew Bailey, said today that he will “take into account” Truss’s measures before making a decision next week on interest rates, but stressed that the recession he anticipates in the coming months is probably inevitable. .
The investment bank Goldman Sachs (NYSE:), for its part, maintains that curbing the increase in the price of energy for households will moderate inflation in the short term.
If Truss announces the measures that have already been advanced by the British media, the entity expects the CPI to reach 10.8% in October in the United Kingdom, instead of the 14.8% that it had forecast until now.
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