The British currency is likely to remain under pressure in the coming days.
(Photo: dpa)
London Sterling was temporarily down 4.7 percent in early Monday trading after Britain’s Chancellor of the Exchequer, Kwasi Kwarteng, signaled he would push ahead with more tax cuts. In the course of a price slump that lasted 20 minutes, only $ 1.0350 was paid for the British currency at times. The pound has never been so weak.
Sterling’s bear market began on Friday after Prime Minister Liz Truss’s government enacted the biggest tax cuts in half a century. Should the pound’s slide continue this week, there is a risk of a deeper crisis that could force a swift policy response.
Against the euro, the pound fell by up to 3.7 percent on Monday to just 1.0787 euros at times.
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