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Currency: Sterling plunges, dollar to higher level

09/05/2022
Categories: Economy/Forex

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At the beginning of the week, the dollar is at a highest level in twenty years. However, the pound is falling to its lowest since 2020 against the dollar.

 

The US dollar started from more beautiful on Monday, favored by markets in search of safe havens, while bitcoin, a risk asset, plunged to a level more seen since the beginning of the year. Around 09:00 GMT (11:00 CET), the Dollar index rose 0.43% to 104.11 points, after peaking at 104.19 points, a two-decade high. The euro fell 0.44% to $1.0505.

The Chinese currency, which is not in the Dollar Index because its exchanges are regulated by Beijing, fell on Monday to 6.7277 yuan to the dollar, a low since November 2020. Sterling, battered, fell to its lowest level since June 2020 for the third day in a row, Monday, against a generally robust dollar. The pound was down 0.4% to $1.2284, after falling to $1.2262, its lowest level in nearly two years. Against the euro, the pound was down about a fifth percent to 85.60 pence, keeping in sight the five-month low reached on Friday.

On the cryptocurrency side, bitcoin suffered from this risk aversion (-6.7% compared to Friday at $33,665, -1.8% compared to Sunday). The main cryptocurrency, dangerously approaching its low of the year, reached at the end of January at $ 32,970.43.

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