The British Pound Reaches Record Low Against The U.S. Dollar

Due to fear’s surrounding the stability of U.K Government finances, the British pound has reached a record low against the U.S dollar. The plunge occurred during trading in Asia and Australia earlier today. It was about 5% to just above $1.03 and extended to a 3.6% dive. It bounced back slightly with a rise to $1.07 as European traders came online. The last record low for the British pound against the U.S. dollar occurred 37 years ago. That was when the pound was worth nearly $1.05. The pound is believed to be suffering more than most in result of the economic outlook in the U.K The plummet occurred following an announcement that the U.K would execute the biggest tax cuts in 50 years as well as boosting government borrowing and spending while facing high inflation.