Panic is a bad advisor.
When the pound briefly fell nearly 5 percent in Asian trading early Monday morning, many believed immediate central bank intervention was needed.
Historical comparisons to the humiliating 'Black Wednesday' pound crash in 1992 have been buzzing on social media.
An immediate sharp out-of-order rate hike should help halt the decline.
The picture changed over the course of the day.
The pound has stabilized, fully recovering from overnight losses and even turning positive.
If the central bank were to intervene now, it would look like a panic reaction.
However, the daily rally cannot hide the fact that the pound has tended to be weak for several weeks, especially against the exceptionally strong dollar, but also against the euro.
First the prospects of recession pushed the sterling rate down, then Finance Minister Kwarteng announced his mega tax cut package.
His relief policy on credit will support consumption and thus exacerbate the inflation problem, and the current account deficit threatens to grow further.
The minister is surprisingly careless about the ups and downs of the markets, too careless.
Kwarteng is a financial and economic historian.
He should once again consult the history books on how dangerous an escalating twin deficit can be.
Prime Minister Truss cannot afford a balance of payments crisis.