Chart of the week: the pound’s post-war swan dive

The pound hit a new 20-month low against the dollar this week as Prime Minister Theresa May postponed the Brexit vote.


The pound hit a new 20-month low against the dollar this week as Prime Minister Theresa May postponed the Brexit vote. After the 2016 referendum, sterling slumped to its lowest level in history against a basket of currencies. "While some may attempt to blame this all on Brexit, it's really the continuation of a story going back decades," says Ed Conway in The Times. Since the 1960s sterling has lost more of its value than any major currency in the world.

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Key episodes that triggered falls include major devaluations in 1949 and 1967; the 1976 crisis, when we had to call in the International Monetary Fund; the decline after we were forced out of the Exchange-Rate Mechanism in 1992, and the 2008 financial crisis.




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