The US dollar is still in high demand in the financial markets. In return, other currencies come under considerable pressure. On Monday night, the euro fell sharply, falling again to a 20-year low. The British pound even fell to its lowest level against the dollar.
One euro cost about $0.95 that night, the same as last time in 2002. The British pound fell at times by nearly five percent to $1,0350. That was a record low. Both the euro and the pound were able to recover somewhat until this morning.
US dollars as a safe alternative
As a safe alternative, the dollar has long benefited from many critical developments in the world, especially the war in Ukraine. The euro is particularly affected by the energy crisis in Europe. The outcome of the elections in Italy, where right-wing forces have prevailed, may have put additional pressure on the European single currency.
The British pound has fallen dramatically
Experts cite the significant tax cuts and other tax cuts from the new government under Prime Minister Liz Truss as a factor of uncertainty for the British pound. The course of the financial policy is causing the foreign exchange market great concern in view of the rising government debt, according to expert You-Na Park-Heger of Commerzbank.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
