The British pound lost its breath and weakened slightly against the dollar after Finance Minister Rishi Sunak announced that unemployment would rise despite new support measures. However, the British currency defended the level of $ 1.27 per pound.
The pound weakened slightly against the US dollar on Thursday after its value first fell and then rose a day earlier. Against the euro, the British pound remained virtually unchanged. During Thursday’s trading, the pound’s exchange rate was negatively affected by the increase in nervousness associated with the introduction of new government measures to support the economy.
Finance Minister Rishi Sunak has announced that the government will only support jobs that are viable. However, according to experts, the subject of discussion will be how to clearly define such a viable job. This means that even though the government counts on supporting the economy, it may be beautiful that unemployment will still rise.
The pound’s exchange rate was certainly not added by the statements of the Governor of the Bank of England that the management of the British central bank is discussing the issue of introducing negative interest rates. The pound has lost almost five percent against the US dollar in the last month. And it probably won’t be better right away.