Pound hits record low against dollar on recession fears

The Nation  |  Sep 27, 2022

Hong Kong-The pound plunged to a record low against the dollar on Monday as traders grow increasingly fearful of a deep UK recession after new finance minister Kwasi Kwarteng unveiled a controversial tax-cutting mini-budget.

Sterling dropped to as low as $1.0350 in early Asian trade, according to Bloomberg data, with some commentators warning it could sink to parity with the greenback.

Investors began dumping the pound on Friday after Kwarteng, who was put in place by Liz Truss after she became prime minister earlier this month, set out plans to slash taxes in a bid to kickstart the ailing British economy. And the selling continued on Monday after he said he intended to unveil further reductions, despite his budget causing ructions on London’s markets, with the FTSE 100 losing around two percent.

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