Introduction: Sterling hits record low after Kwasi Kwarteng pledged more tax cuts
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International confidence in the UK has been badly hammered by the mini-budget, and the Truss government’s tax-cutting policies, and the pound is paying the price.
Sterling had plunged to a record low against the US dollar in Asia-Pacific trading, extending the losses suffered on Friday, and moving closer to parity.
Investors have been rocked by the bonanza of tax cuts announced in Kwasi Kwarteng’s mini-budget – with the UK chancellor pledging over the weekend to pursue more tax cuts.
The pound plunged nearly 5% at one point to around $1.0327, Reuters data shows, a record low since at least decimalisation in 1971, as belief in the UK’s economic management and assets evaporated.
Even after stumbling back to $1.05 as City traders reach their desks…
