Sterling:Dollar Rates
Sterling's slide has continued, with the pound touching US$1.3622, as concerns about the UK economy and the banking sector intensified.
Sterling fell to its weakest level against the dollar since September 1985, before rising to $1.4015 ... last summer the pound was trading at more than $2
Over the last week, I have sat through several briefings that predicted that the Sterling:Dollar exchange rate will go to 1:1 over this year. If this happens, it will of course be the fault of evil currency speculators shorting Sterling & have nothing to do with the market correctly valuing the disastrous impact of Gordon Brown’s failed economic policies
Comments
Looks like sterling is going the same way as the Pacific Peso the AU$. On the bright side, its a further nail in the coffin (or heart) of Gordon's Government. Now you just need a half decent opposition to exploit it.
Posted by: Todd | January 22, 2009 2:02 AM
I'd be surprised if your country doesn't have a standing arrest warrant out for George Soros for the last fiasco. Shameful greed and an even more shameless pursuit of swaying our elections with his massive wealth.
Posted by: POWinCA | January 22, 2009 2:51 AM
Well, yes. But I do think that the $2 exchange rate was a tad over-valued. Compared to a more realistic exchange rate (of about, I think, $1.75), the current rate is poor but not calamitous.
HOWEVER: if we look long-term at Britain's prospective ability to earn (i.e. grow) its way out of the current mess, the 1:1 rate may even be optimistic.
The U.S. economy can and will rebound at some point (although it will be harder than in the past because of our stupid government actions), but I'm not sure that one can really say that about the U.K. with any degree of certainty.
Posted by: Kim du Toit | January 22, 2009 2:19 PM
Strawberry jam from Fortnums will be affordable!
See? There's always a silver lining.
Posted by: Mrs. du Toit | January 22, 2009 2:28 PM
During my first squadron deployment to Japan as a young US Marine corporal, the exchange rate was 286 Yen to one US Dollar. That was Spring of 1982. Last I checked, it was about 86 yen to the dollar. Ouch!
Posted by: Bob in San Diego | January 24, 2009 10:15 AM