Pound slumps against euro as ECB plots more interest rate rises

The pound has dropped to its weakest against the euro since early 2021 as traders gear up for more interest rate rises by the European Central Bank.

Sterling shed 0.6pc against the euro to 87.18p, while the common currency also made strong gains against the dollar and yen.

The ECB last week raised interest rates by 75 basis points – the biggest increase on record – in an effort to tackle sky-high inflation.

Markets are now bracing for further monetary policy tightening after Joachim Nagel, president of the Bundesbank, signalled over the weekend that more rate rises were coming.

There was some respite for the battered pound as it rose 1pc against a weaker dollar to $1.17 – its highest in almost two weeks and up from a 37-year low.

But sentiment remains downbeat after new figures showed the economy grew just 0.2pc in July, a weaker rebound than expected from the extra bank holiday in the previous month.

Ameh Jazzia-Becky

Recent Posts

BREAKING: APC Crisis: Court of Appeal dismisses Moses Agaba’s appeal against Austin Agada

The Court of Appeal in Makurdi, Benue State, on Thursday dismissed an appeal filed by…

13 hours ago

BBNaija’s Phyna publicly rejects family, drops surname

Big Brother Naija Season 7 winner, Josephine Ijeoma Otabor, also known as Phyna, has publicly…

13 hours ago

Yemi Alade slams Cool FM, Clout Africa over blacklisting, refusal to forgive

Nigerian singer Yemi Alade has criticized prominent media outlets Cool FM and Clout Africa, accusing…

13 hours ago

BREAKING: Relief as Lakurawa terrorists flee Nigeria after military intervention

Senator Adamu Aliero, representing Kebbi Central, has announced that the Nigerian military successfully expelled the…

14 hours ago

BREAKING: Supreme Court nullifies National Lottery Act, grants states exclusive control

The Supreme Court has struck down the National Lottery Act of 2005, ruling that the…

14 hours ago

Latest update on fuel price hike, fuel scarcity for November 22nd, 2024

As Nigerians express their frustrations over the recent fuel price hikes by the Nigerian National…

19 hours ago