Pound hits 37-year low below $1.12 as recession fears grow

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The pound fell to a fresh 37-year low against the dollar Friday as traders grow increasingly worried about the economic outlook with central banks ramping up interest rates to fight runaway inflation.

Sterling fell as low as $1.1151 — its weakest since early 1985 — after the Bank of England on Thursday hiked borrowing costs by 50 basis points. That followed a three-quarter-point lift by the Federal Reserve on Wednesday and a warning of more to come.

The greenback also surged against the euro, with the single currency buying $0.9753, a new 20-year low. Traders are now looking to London, where new finance minister Kwasi Kwarteng is due to announce a mini-budget aimed at supporting households and businesses.— AFP

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