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Pound falls to fresh low as Liz Truss likely to become new UK prime minister - YAHOO FINANCE

SEPTEMBER 05, 2022

The British pound (GBPUSD=X) has fallen fresh lows as Britons await to learn who will succeed Boris Johnson as the next prime minister of the UK.

Liz Truss is hotly anticipated to become the next leader of the Conservative party and the occupant of Number 10 Downing Street, as she maintains a lead in the polls against former chancellor Rishi Sunak.

Read more: Kwasi Kwarteng set to become UK's first Black chancellor

Sterling slid to its weakest level against the dollar ahead of the announcement on Monday afternoon, to as low as $1.144 — its lowest level since March 2020.

Against the euro (GBPEUR=X) the pound was little moved, up 0.2% to €1.158.

But the pound was not the only currency performing worse this year amid rampant inflation, a looming economic slowdown and political uncertainty.

The euro (EURUSD=X) also plummeted against the dollar as the energy crisis threatens to push the bloc into recession. The common currency fell below 0.99 cents for the first time since December 2002, down 0.7% to $0.9884 in early trading.

"As a storm erupts over energy supplies and fears mount that European industries may have to scale back some production in the months to come, the euro has dipped below parity with the dollar, for the first time in two decades," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

"The euro fell to $0.988, the lowest level since 2002, while the pound hit a new two and a half year low at $1.144."

On Friday, Kremlin-controlled gas company Gazprom (GAZP.ME) said it will not turn the Nord Stream pipeline back on after three days of maintenance, blaming an oil leak at a gas turbine that helps pump the fuel into the pipeline.


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