The pound has collapsed to its lowest since 1985

On Monday, the British pound collapsed to its lowest since 1985. At the moment, the exchange rate of the GBP/USD currency pair fell to the level of $ 1.1444, losing 0.55%.

The main pressure on the pound sterling is exerted by the current strengthening of the US dollar, as well as the economic situation in the UK itself. Analysts fear that due to the energy crisis in the country, many households will not be able to pay bills in winter.

In addition, doubts about the ability of the Bank of England to cope with record inflation are another factor for the weakening of the British currency. Experts expect that inflation in the UK will reach 22% next year due to an increase in the cost of energy resources, which could lead to a fall in the economy by 3.4%.

Additional pressure on the pound is exerted by uncertainty about the economic policy of the new British Prime Minister Liz Truss. Today it became known that Truss, the British Foreign Minister, was elected head of the Conservative Party and prime Minister of the country. Truss scored 81.3 thousand votes, thus overtaking ex-Finance Minister Rishi Sunak, for whom 60.4 thousand people voted.