Pound Hits Record Low as Selling Continues After U.K. Tax-Cut Plan
September 25 2022 - 11:13PM
Dow Jones News
By Kosaku Narioka
The British pound fell to a record low against the dollar in
early Asian trade on Monday as selling continued after the U.K.
government on Friday unveiled the country's biggest tax cuts since
the early 1970s.
The pound briefly fell below $1.04, hitting a record low,
according to data on CQG. Its previous all-time low was around
$1.05 marked in 1985.
The new government measures are aimed at kick-starting growth at
a time of global economic turmoil, but they raised concerns among
investors about the impact on inflation and the longer-term
sustainability of U.K. finances.
Meanwhile, the dollar has been rising across the board as the
Federal Reserve continues its aggressive rate increases to help
control inflation. The U.S. central bank last week approved its
third consecutive interest-rate rise of 0.75 percentage point and
signaled additional large increases were likely.
The euro fell below $0.9600 earlier in the day, its lowest level
since June 2002.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
September 25, 2022 22:58 ET (02:58 GMT)
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