The unbridled dollar stomps on the sterling as the US Federal Reserve goes ahead with rate hikes
Sterling: Sterling fell to just $1.1403 against the dollar in afternoon trade, its lowest since 1985
The dollar continued its dominance of currency markets as it surged to a 37-year high against the pound.
Sterling fell to just $1.1403 against the dollar in afternoon trade, its lowest since 1985, and the greenback also battered the Japanese yen, hitting a 24-year high of nearly 145 yen to the dollar.
The moves come as the Federal Reserve continues its aggressive rate hike path to bring US inflation back to its 2 percent target.
The decline also matches the mid-1980s trough, when a catalog of tax cuts and interest rate hikes by President Ronald Reagan and Federal Reserve Chairman Paul Volcker put massive pressure on the dollar.
Meanwhile, the euro temporarily hit €0.98, its lowest level since 2002, as forex traders continued to worry about a growing energy crisis on the continent after Russia decided to shut down the vital Nord Stream 1 gas pipeline.
Traders didn’t seem to believe the euro would rebound sharply, despite predictions that the European Central Bank will hike interest rates by a huge 0.75 percent today in a bid to curb inflation.
