The British pound fell to its lowest level against the euro in almost a year, as U.S. reciprocal tariffs came into effect this Wednesday.
The euro, which is the world’s second most liquid currency, strengthened as it profited from its liquidity. Euro’s liquidity places it in an advantageous position to benefit from any crisis in dollar confidence, according to ING analysts.
At 09:03GMT, the euro was seen trading at 0.8595 vs. the GBP, according to Investing.com data.
While the GBP/USD’s value was affected by risk aversion due to the U.S. tariffs, it managed to rise 0.4% to 1.2815. This increase was a result of the dollar weakening due to concerns about the impact of tariffs on U.S. economic growth.
