The COVID-19 pandemic caused global central banks to take emergency action to support the world’s economies; one such measure was the rapid cut in interest rates to record lows.

In late September the pound fell spectacularly from above $1.12 to a new record low of $1.035 versus the US dollar.

It’s true that the dollar had been appreciating for many months, and the pound was one of the most undervalued currencies of the year, but this was news making headlines and front pages around the world, and it was exclusively a domestic problem.

Just as the UK was experiencing record temperatures and a summer heatwave, the annual rate of inflation accelerated to a fresh forty-year high.

After weeks of speculation and predictions of the euro’s value hitting parity with the US dollar, it finally happened this week, and the world noticed.