The Pound Went on a Wild Ride Close to Dollar Parity in 2022
- Inflation, politics and a budget shock all slammed sterling
- Pound seen trading in $1.10-$1.30 range for some time
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Three prime ministers, four finance ministers and one ill-fated budget dragged the pound within an inch of parity versus the US dollar in 2022.
It was a wild ride for the currency, which suffered as political chaos engulfed the UK throughout the year. But everything went into overdrive in September, when the government’s gamble on a huge tax giveaway backfired, investors dumped sterling and UK bonds, and the Bank of England was forced to intervene to prevent a gilt market crash.