By Yasin Ebrahim
Investing.com – The pound slumped against the dollar on the eve of the U.K. budget revelation despite expectations the country is set to deliver a big stimulus package and measures to help combat the Covid-19 outbreak.
"As part of the budget, as well as providing net stimulus for the economy and more support for the National Health Service, I hope the Chancellor will announce measures to ensure economic damage from this crisis doesn't become more permanent," Royal London Asset Management senior economist Melanie Baker said.
GBP/USD fell 1.59% to $1.29.
The dollar, meanwhile, was also boosted by a rebound in Treasury yields from a plunge to record lows a day earlier. Still, some on Wall Street warned the bottom was not in yet for Treasury yields.
"We're likely to see further declines in Treasury yields. We think the federal funds rate gets cut to 0%. I think it's a long-time before we see rates go back up," said Kathy Jones, chief fixed income strategist at Charles Schwab (NYSE:SCHW).
The U.K. government confirmed its first budget announcement will take place on March 11, starting at around 12:30pm GMT (08:30 ET).