Home / Knowledge / News / Textiles / Pound falls below $1.30 for first time in 3 decades
Pound falls below $1.30 for first time in 3 decades
07
Jul '16
British currency pound sterling has fallen below $1.30 for the first time in more than 30 years amid increasing concerns about UK's financial stability post its decision to leave the European Union.
 
The Bloomberg British Pound Index, which measures the UK currency against other major currencies, has fell 13 per cent since the referendum, and dropped to the lowest since the agency started maintaining data in 2004.
 
Soon after the last month's referendum, pound had shrunk to $1.28, but the rate steadied thereafter. However, investors have now started weighing in implications of interest rate cuts and central bank money-printing to boost economy.
 
Concerns have arisen on whether Britain's real estate market would sink further due to Brexit after suspension of a handful of property funds, which has triggered a new wave of pound selling. Russian and Chinese investors have invested in London property in recent years and stoppage of this investment flow would also affect the British pound exchange rate vis-à-vis other currencies.
 
There is also a concern that Britain's economy may fall into a recessionary period, if the country fails to control the aftershocks of the referendum.
 
The effect of pound's fall is also being felt on the Japanese yen, as investors seek solace in Japanese currency. Prime minister Shinzo Abe has already asked Bank of Japan to work the G7 nations to secure market liquidity of yen.
 
According to analysts, a weaker pound would be a boon for British exporters, but it also signals declining confidence in the UK's economy. This declining confidence may dry up funds inflow and further increase the country's current account deficit. (RKS)
 

Fibre2Fashion News Desk – India


Must ReadView All

UNIDO, eWTP discuss strengthening ties to back e-commmerce

Textiles | On 25th Apr 2018

UNIDO, eWTP discuss strengthening ties to back e-commmerce

United Nations Industrial Development Organisation director general...

Courtesy: HueTrap

Apparel/Garments | On 25th Apr 2018

Making sustainability affordable is a big challenge

In a lot of instances, being sustainable comes with an additional...

Courtesy: Formosa Petrochemical Corporation

Textiles | On 25th Apr 2018

Formosa to set up petrochemical plant in Louisiana

Formosa Petrochemical Corporation has selected St. James Parish in...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search