Pound Marks ‘Black Wednesday’ With Drop to Lowest Since 1985

Black Wednesday, on Sept. 16, 1992, was the day the UK crashed out of the Exchange Rate Mechanism, a system linking a number of European currencies. The Bank of England had intervened at the time, raising interest rates and spending billions trying to prop up the pound and keep it within a set range, but to no avail. Doubts about the ability of the authorities to correct the direction had prompted the market to go on the attack.

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