The pound traded gloomily on Wednesday, amid a resurgence of the greenback dollar ahead of the monetary policy announcement by the Federal Reserve (Fed).
The rise of the U.S. dollar was driven by a rise in 10 -year U.S. treasury yields that rose higher at 1.64%.
However, the pound is not only under pressure from the US dollar, but also due to allegations against UK Prime Minister Boris Johnson who allegedly made a ‘controversial’ statement last year during the rise of the Covid-19 case in the country.
According to The Guardian, PM Johnson is alleged to have issued a statement ‘let the deaths rise, it is better than implementing another closure’, at an office in Downing Street after a meeting with the minister.
Although these allegations have been vehemently denied by PM Johnson, the BBC, ITV and Daily Mail all reported the same version of the story that he had issued the statement.
The allegations have clearly aroused the anger of the people and provided room for the opposition to criticize Boris Johnson, thus sparking tensions in politics in the country.
During the European session, the pound struggled to defend its position by trading around 1.38800 against the US dollar.
