The pound has fallen to a record low against the dollar amid a fresh investor rush towards the US currency globally.
Sterling slipped by nearly 5% early on Monday to $1.0327 – building on fresh 1985 lows seen on Friday after UK chancellor Kwasi Kwarteng unveiled the biggest programme of tax cuts for 50 years.
The £45bn tax-slashing package saw the market deliver a verdict on whether the public finances would be sustainable.
The pound plunged below its all-time low against the greenback – set in February 1985 – of $1.054 early on Monday in Asian trading, fuelling fears at that time that parity was even possible.
It later stabilised around $1.05405 – still 3% below the previous session’s close.
The government’s growth plan was clearly the catalyst for Friday’s plunge and traders said it had exacerbated the focus more widely as the dollar also shot up against a basket of other international currencies.
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