Hostname: page-component-586b7cd67f-rdxmf Total loading time: 0 Render date: 2024-11-24T17:56:43.715Z Has data issue: false hasContentIssue false
  • English
  • Français

Risk and the UK exchange rate

Published online by Cambridge University Press:  26 March 2020

Ray Barrell  and
Dawn Holland
Ray Barrell*
Affiliation:
National Institute of Economic and Social Research
Dawn Holland*
Affiliation:
National Institute of Economic and Social Research
*
e-mail: [email protected]
e-mail: [email protected]
Get access Rights & Permissions [Opens in a new window]

Extract

Sterling has fallen markedly against other currencies in the past few months, and in January reached its lowest point against the euro (or its equivalent) since the last quarter of 1996, as we can see from figure 1, which uses the first three weeks of January 2008 as an indicator of the value that will be achieved in the whole first quarter. Sterling has also weakened against the dollar in the past few months, although it remains at a high level. In effective terms, sterling fell on average by 2.5 per cent in the fourth quarter, and in early January it was more than 6 per cent lower than the average for the previous quarter. The fall was largely unanticipated, and the effective exchange rate for the first quarter of 2008 is more than 7 per cent below where we assumed it would be in October 2007.

Type
Articles
Information
National Institute Economic Review , Volume 203 , January 2008 , pp. 54 - 56
Copyright
Copyright © 2008 National Institute of Economic and Social Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Al-Eyd, A., Barrell, R. and Holland, D. (2006), ‘A portfolio balance explanation of the euro dolar rate’, in Cobham, D. (ed.) The Travails of the Eurozone, Palgrave.Google Scholar
Barrell, R., Holland, D. and Hurst, A.I. (2007), ‘Sustainable adjustment of global imbalances’, in Aslund, A. and Dabrowski, M. (eds), Challenges of Globalization: Macroeconomic Imbalances and Development Models, Peterson Institute of International Economics.Google Scholar
Barrell, R. and Pain, N. (2000), ‘Monetary and fiscal policy in Europe’, National Institute Economic Review, 174, October.CrossRefGoogle Scholar