The pound to Australian dollar (GBP/AUD) exchange rate started trading lower yesterday morning, at a level of AU$2.0176 amid rising fears of the coronavirus spread. The fears continued to dominate markets yesterday as funding concerns were the talk of the British news, with concerns weighing the currency down. Investors remained concerned with the economic fallout of the virus and the announcements made by the UK Prime Minister and Chancellor on Monday. The UK saw further relief packages pledged yesterday evening with the government offering support for renters and freelance workers. The UK government also announced that schools in the country will close this Friday, in an attempt to combat the spread of the coronavirus. Meanwhile, AUD rose against GBP but sunk against USD as recession fears for the Aussie economy continued to rise yesterday.
GBP Shaken on Funding Concerns, but UK Government Addresses Major Issue on Wednesday
The British pound has been held back of late due to rising concerns about the availability of funding as businesses close amid the coronavirus panic, leaving many without jobs and income to support their homes and families. The coronavirus fears dominated news again yesterday as the £330 billion lifeline of loan guarantees along with a pledge provide another £20 billion in tax cuts, grants, and other help for small businesses facing the ever-growing risk of collapse. However, despite this announcement, markets seemingly shrugged it off and remained concerned about the coronavirus’ path.
Not giving up on the UK economy, the UK government announced yesterday evening that it has also made plans to provide funding and support to renters and freelance workers. Within the announcements, the government highlighted complete protection against evictions for renters. Following the news, the two distinct groups of people which were concerned with the lack of information regarding their situations in the coronavirus crisis have been somewhat reassured. GBP received some support following the announcement as the UK government looks to be making to right moves to protect the various situations that its citizens may be in.
AUD Rises Against GBP but Hits Fresh 17-Year Low Against USD
For the Australian dollar, it found itself edging over the pound yesterday as GBP investors worried over the future of the UK economy and the steps the government would take to ensure safety in the UK. But up against USD, the Aussie currency crumbled, knocking it down to a fresh 17-year low. In Australia, fears continue to mount as the Australian government announce its toughest measures yet to help slow the spread of COVID-19.
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