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The pound fell to its lowest level against the dollar in more than four months yesterday as the so-called “Trump trade” put further pressure on global markets.
The pound hit $1.2627, its lowest level since July 2.
It has fallen from more than $1.30 the day Americans went to the polls last week.
Dollar rally: Sterling hit $1.2627, its lowest since July 2. It has fallen from $1.30 the day Americans went to the polls last week.
The strength of the dollar following Donald Trump’s election victory has also affected the euro, which yesterday fell to its weakest level against the dollar since October last year, below $1.05.
The U.S. currency has risen as the president-elect’s promises of tax cuts and tariff increases stoke fears of inflation, meaning U.S. interest rates could stay high for longer.
Matthew Amis, chief investment officer at fund manager Abrdn, said: “The ‘Trump trade’ has re-emerged in market prices after initially faltering, and the US dollar has been the main beneficiary.”
The cryptocurrency bitcoin has been a big winner amid bets that a Trump presidency will mean friendlier regulation of the asset class.
But it is still subject to the volatile fluctuations for which it has become famous.
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