The British pound has suffered a historic plunge to its lowest level since 1985 as concerns mount about the economy amid the coronavirus outbreak and as investors flock towards the dollar.
Sterling was last down four per cent against the dollar at $1.158, its lowest point since the economic turbulence of the 1980s and one of the biggest one-day drops on record.
The fall came despite chancellor Rishi Sunak yesterday unveiling a £350bn package of measures to support the UK economy.
With much of the country self-quarantining, offices and factories closed, and businesses shuttered, investors are bracing themselves for an enormous economic hit in the UK and around the world.
Funds are even selling up their so-called safe-haven assets such as government bonds as their customers demand their money back amid chaos in the markets.
“With investors desperately looking for something resembling a safe haven, the dollar has become a go-to for nervy traders, causing the pound to get absolutely pummelled,” said Connor Campbell, financial analyst at trading platform Spreadex.