Greenback slides as markets start recovering from Brexit
On Tuesday, the evergreen buck dipped against other key currencies, as worries sparked by the UK’s decision last week to abandon the European Union, started to ease and market participants paid attention to riskier assets.
The currency pair GBP/USD surged 0.62%, trading at 1.3309, off the 31-year minimum of 1.3122 achieved on Monday, a value, which hasn’t been observed since 1985. The two-day sell-off in the British pound observed on Friday and Monday appeared to be the largest in recent history.
Global stock markets suffered the greatest two-day rout ever, because a wave of selling wiped around $3 trillion from the financial markets.
On Monday, ratings agencies Standard & Poor’s along with Fitch Ratings dared to downgrade their credit ratings for Great Britain and warned that further cuts are probable.
S&P appeared to be the only major ratings agency to preserve a Triple A rating for Great Britain.