Pound slumps to all-time low against dollar

The pound has fallen to a record low against the dollar as markets react to the UK’s biggest tax cuts in 50 years, the BBC reports.

In early Asia trade, sterling slipped just below $1.04 – the lowest level since decimalisation in 1971 – before regaining some ground to about $1.05.

That came after Chancellor Kwasi Kwarteng unveiled historic tax cuts funded by huge increases in borrowing.

The pound has also been under pressure as the dollar gets a boost by the US central bank continuing to raise rates.

The euro also touched a fresh 20-year-low against the dollar in morning Asia trade amid investor concerns about the risk of recession as winter approaches with no sign of an end to the energy crisis or the war in Ukraine.

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