The pound fell against the U.S. dollar and the euro on Thursday in choppy trading after Queen Elizabeth, Britain’s longest-reigning monarch and the nation’s figurehead for seven decades, died.
“The Queen died peacefully at Balmoral this afternoon,” Buckingham Palace said in a statement. Sterling was last down 0.3%, at $1.1506. It hit as high as $1.1516 following the news. The euro rose 0.1% against the pound, to 86.85 pence . ”
There’s no significant impact on the pound,” said Amo Sahota, director of FX consulting firm Klarity FX in San Francisco.
“The Queen was clearly an icon in British culture, but politically very little significance,” he said. “There are going to be questions around the prime minister. It’s a government that is in transition anyway.
But it won’t have any bearing on the economy.” Charles, Britain’s new king, described the death of his mother, Queen Elizabeth, as “a moment of the greatest sadness,” in a statement issued by Buckingham Palace.
Sterling had been trading lower earlier in the global session as hawkish remarks from Federal Reserve Chair Jerome Powell offset British policies unveiled by Britain’s new prime minister, Liz Truss, aimed at reducing surging energy costs.