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$3 to the pound, no more

It was once, one of the Barmy Army's most loved chants at the expense of Australians at the Ashes.

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"We're fat, we're round, three dollars to the pound".

But now, nothing could be more further than the truth.

 

The Australian dollar hit a 28 year high against the British pound today, breaking through 69 British pence for the first time since February 1985.

 

That's the highest since records began.

 

The Aussie has been gaining significant steam over the past month against the UK currency, but that has more to do with the pound's weakness.

 

Britain's economy is dangerously close to falling into a triple dip recession, contracting by 0.3 per cent in the final quarter of last year, and that's caused many investors to sell the pound.

 

It's currently at a 30 month low against the US dollar.

 

Next week, the British government will hand down its 2013 budget, with money watchers keen to see if there will be any moves on the fiscal front to bolster the economy.

 

So, while Cricket Australia has hit a sour note, ejecting four players from its team in India, it may be a good time to head over to England for the Ashes in June to back the Aussies.

 

"We're fat, we're round, one and a bit dollars to the pound" doesn't have the same ring to it, hey?


2 min read

Published

Updated

By Ricardo Goncalves

Source: SBS


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