Pound hits all-time low against USD following tax cuts by UK govt

26 Sep '22

1 min read

Pic: Shutterstock

The pound fell marginally below $1.035 this morning—the lowest since the British currency switched to decimal units in 1971—followed by a slight recovery to $1.0671. It also slumped more than 3.7 per cent against the Euro, dropping below €1.08 before recovering to €1.10. The slide against the dollar picked up pace last week after the government unveiled a mini budget.

The mini budget outlined plans to cut taxes and boost spending, sparking concerns about a rise in public borrowing, thereby worsening the nation's cost-of-living crisis. British finance minister Kwasi Kwarteng announced the tax cuts without corresponding reductions in spending.

The British currency closed at $1.0822 in London on September 23, from $1.1255 a day before, according to media reports from the country.

The pound’s previous all-time low was around $1.05 marked in 1985.

ALCHEMPro News Desk (DS)

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