N483/N485 (updated 8.12.16:close)
buying/selling naira exchange rates per USD
Tuesday, 4 October 2016

The British pounds sank to its worst performance since 1985 following the exit of Britain from the European Union.

According to USA Today,
The pound hit a 31-year low against the dollar on Tuesday as the British currency faced renewed pressure following Prime Minister Theresa May’s weekend comments that she would start the process of leaving the European Union by the end of March next year.

The pound hit a 31-year low against the dollar on Tuesday as the British currency faced renewed pressure following Prime Minister Theresa May’s weekend comments that she would start the process of leaving the European Union by the end of March next year.

The pound fell 0.5% to $1.2760 — that’s its lowest level since 1985 and about 15% below where it was before the United Kingdom’s June 23 referendum on EU membership that ended in support for Brexit, a British exit from the EU.

The last time the pound was at this level former President Ronald Reagan was serving his second term in office and a gallon of gas in the United States cost about $1.20 (compared to an average of $2.28 in 2016). In Britain, Margaret Thatcher was prime minister, a debate in the House of Lords was televised for the first time and the first British cell phone call was made.

Currency investors appear to be rattled by concerns that as part of its withdrawal from the 28-nation EU, the U.K. will also depart the organization’s single market trading bloc. While the pound has plummeted, British shares have soared, in part because the overseas earnings of many of the companies listed on London’s FTSE 100 index are more valuable when the pound loses value.

The FTSE 100 index leaped more than 1.8% Tuesday to 7,114. It has not closed above 7,000 since April last year.

A lower pound also beneficial to foreign tourists in Britain, whose spending power increases as the local currency declines. The dollar also rose against the yen and euro on Tuesday. That boost was fueled by a U.S. manufacturing index that expanded in September after shrinking in August.
 
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