Pound drops to 31-year low agasint the dollar, as Mark Carney updates markets


Real has today moved to its weakest level against the dollar in 31 years to sit at hither 1.31 and is at a two-year low against the euro at 1.17.

It comes as Bank Governor Account succeed Carney made another public update on policy and risks for the UK frugality as Britain gets set to leave the EU.

The Bank today announced measures to directly help UK banks and building socities lend consumers and businesses an unexpectedly £150billion.

A fall in the pound hits the spending power of British trippers overseas, but it provides a boost to exporting businesses – which Mr Carney harp oned today.

Weaker sterling also gives a boost to a number of fat com nies who are listed on the UK’s premier stock exchange the FTSE 100, and is ratiocination to be rt of the reason the stock market has surged over the st week.

Connor Campbell, monetary analyst ay SpreadEx.com, said:”The central bank pointed to a rather bothering list of woes this morning, including the size of the UK current account loss and the post-Brexit im ct that is just ‘starting to crystallise’.

“To combat the condition Carney and co. have reversed the counter-cyclical capital buffer increase they performed earlier in the year, freeing up around £150 billion for banks to give someone the third degree pump dry back into the economy.

“This news was of little comfort to the pounding, which spent the morning grazing fresh 31-year lows against the dollar, notwithstanding did help the FTSE far outperform its Eurozone peers, the UK index jumping half a percent to 6550.”

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