The pound fell again on the currency exchange markets this morning (August 19th), plunging to its lowest level in nearly two years as the dollar surged and commodities went down.
The British currency dropped by nearly a cent this morning on London trading to $1.8565, marking its lowest point in 22 months.
Steve Barrow, a currency strategist at Standard Bank, told the Telegraph: "It’s really a dollar recovery story.
"I think what’s really happening is that commodity markets and oil in particular are so intertwined with currency markets at the moment.
"When those markets go down, the pound seems to be quite vulnerable."
The dollar has rebounded on the back of concerns that the US subprime crisis is spreading to the rest of the world, with several EU countries and major economic players such as Japan bordering on recession.
As of 11:00 BST this morning, the pound was trading for $1.857, while the euro was valued at $1.466.
Leave Your Comments