Speculative Attack
A concerted effort by financial-market speculators to profit from a sharp change in currency values.
For example, the massive sale of the UK pound by currency traders in 1992 caused the value of the pound to collapse. Then, these same speculators could repurchase the pounds at much lower prices.
For example, the massive sale of the UK pound by currency traders in 1992 caused the value of the pound to collapse. Then, these same speculators could repurchase the pounds at much lower prices.