The pound has fallen below $1.13 for the first time in 37 years after the Federal Reserve raised interest rates by another 75 basis points and signaled further tightening, according to The Times.

Sterling fell after the Fed’s more hawkish stance on curbing inflation pushed the dollar to a two-decade high. Jerome Powell, chairman of the Fed, said he and his fellow policymakers would “keep at” their battle to beat down inflation. The central bank’s projections foresee rates rising at a faster pace and to a higher level than expected.

The pound was trading at $1.1224 this morning, down 0.4 per cent. The surge in the dollar also hit other currencies: the euro slid 0.2 per cent to $0.98 and the Chinese yuan fell to a 27-month low.

Source: Azerbaijan State News Agency