The pound rate has fallen to a 37-year low

During trading on Friday, the British pound sterling paired with the US dollar fell to its lowest since 1985 amid the continued strengthening of the US currency. The dollar, in turn, is growing on expectations of a Fed rate hike.

The current quote of the GBP/USD pair is 1.1380. The daily low was marked at 1.1351, which was the lowest price value in the last 37 years. 

Additional pressure on the British currency was exerted by statistical data reflecting a 1.6% drop in retail sales in the UK in August on a monthly basis, which was the biggest drop since December 2021. Analysts predicted a decline in sales of only 0.5%.

These data have increased concerns about the future prospects of the British economy. The situation in the country is complicated by the current policy of the new British Prime Minister Liz Truss: last week she announced a restriction on the sharp increase in consumer electricity bills for the next two years, which will mitigate the consequences of the energy crisis. It is noted that the country's budget will suffer significantly.