Pound hits a records 5-month low against the dollar

As UK Covid-19 cases surge, UK’s pound Sterling hit its lowest since February. It traded close to a five-week low against the dollar on Tuesday morning in London.  

By 11.30 am, sterling (GBPUSD=X) was trading at $1.3642 against the dollar. The pound dipped to a multi-week low against the euro (GBPEUR=X) to trade at €1.1586.  

The Pound-to-Euro exchange rate reached 1.1571, its lowest level since early June. And the Pound-to-Dollar exchange rate fell to its lowest level since February when it reached 1.3646. 

“Sterling is finally starting to show some under-performance, and euro-sterling may well continue to spike – even to the 87.20 pence area,” ING strategists say. “Driving the under-performance is the sense that the UK government will struggle to ride out the surging case numbers before resorting to fresh lockdowns,” they added.  

Britain reported 39,538 new covid cases on Monday, and global markets have turned wary amid a spike in infections. Prime Minister Boris Johnson has urged the citizens to remain cautious. 

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