Pound Plunges Amid Dollar Surge Post-Trump Victory

The British pound faces its steepest decline against the dollar since March 2023, following Donald Trump's presidential election victory. The dollar strengthens on Trump's anticipated fiscal policies and a Republican 'Red Sweep.' Meanwhile, the UK budget and Bank of England's rate decisions continue to influence market dynamics.

The British pound witnessed its sharpest one-day drop against the US dollar since March 2023, fueled by the dollar's ascent following Donald Trump's election victory.

Trump's win has buoyed the dollar against global currencies, including the pound, with expectations of expansionary fiscal policies and US import tariffs driving potential inflation. A Republican 'Red Sweep' could grant the party substantial policy power.

The recent UK budget and upcoming Bank of England decisions are key market influences, with the pound's performance vis-à-vis the euro reflecting the differing monetary strategies of the UK and European banks. The currency dynamics remain volatile amidst ongoing political and economic developments.

(With inputs from agencies.)