GBP/USD Exchange Rate Falls as Brexit Fears and New Covid-19 Strain Darkens UK Economic Outlook
The Pound to US Dollar (GBP/USD) exchange rate plummets by -2% today after France banned UK transport and hauliers following news of a new mutation of Covid-19 in the south-east of Britain.
British Transport Secretary, Grant Shapps, said that there will be ‘significant disruption’ at Dover, sparking concerns for the UK economy.
Paul Donovan, the chief economist at UBS Global Wealth Management, commented:
‘The near-term economic effects of this are, perhaps, limited - inventories tend to be high at this time of the year, and the UK has imposed more restrictions on activity. However, this does signal a relatively high degree of fear, and it is fear of the virus that does the most economic damage.’