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Street scene in the City of London
Photo: ANDY RAIN/EPA
It is not just the euro that is suffering from the strength of the dollar: the pound sterling is also under massive pressure.
The course of the British economy has recently slipped so sharply against the US currency that some analysts in the City of London already think they can see parallels to “emerging market currencies”.
While such comparisons are overblown, the pound's record in 2022 is demonstrably bad.
The British currency has lost 16 percent against the dollar since the beginning of the year.
Since 1992, there have only been four years in which the pound has lost more than 10 percent in value.
Most recently, the British currency was quoted at a rate of 1.13 dollars.
That was the lowest level since 1985.
Similar to the euro, which has lost as much as 20 percent against the dollar since January, a number of factors are putting pressure on the pound.
A deep economic crisis is emerging in Great Britain.
The cost of living is skyrocketing.
The reason for this is not only the energy price increases in Europe triggered by Russia, but also the British exit from the European Union (EU).
And the bad news doesn't stop.
The data on retail sales published on Friday was "terrible", quoted the news agency "Bloomberg" from the London analyst Derek Halpenny (click here for the report).
The pound rate will "continue to fall in view of the increasing volatility".
The new Prime Minister Liz Truss faces major economic challenges.
She has announced that she will expand government spending during the crisis.
But that could fuel inflation in the UK further.
This had risen to its highest level in four decades in the summer.
Pound weakness could also fuel inflation as dollar-paid imports become more expensive for British customers.
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