British pound plummets to record low against the dollar
2 years, 3 months ago

British pound plummets to record low against the dollar

CNN  

CNN Business — The British pound crashed to a record low against the US dollar on Monday on growing fears about the stability of UK government finances. The currency slump follows British Chancellor of the Exchequer Kwasi Kwarteng’s announcement on Friday that the United Kingdom would implement the biggest tax cuts in 50 years at the same time as boosting government borrowing and spending in the face of high inflation. “So much so that markets are factoring in a strong chance of a substantial emergency rate hike from the Bank of England in order to shore up the currency and confidence in the markets.” The new tax-slashing fiscal measures, which include scrapping plans for an increase in corporation tax and slashing the top rate of income tax, have been criticized as “trickle-down economics” by the opposition Labour Party and even lambasted by members of the Chancellor’s own Conservative party. Kwarteng doubled down at the weekend, hinting in TV interviews Sunday of more tax cuts to come, saying Friday’s measures were “just the start” as the government goes all out for growth.

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History of this topic

Sterling slides for a fourth day amid bond market turmoil
5 days, 1 hour ago

Sterling slides for a fourth day amid bond market turmoil

Live Mint  

By Greta Rosen Fondahn Jan 10 - Sterling continued its slide on Friday, its fourth day of falls, as elevated global bond yields kept the currency under pressure. Global borrowing costs have soared amid concerns about rising inflation, reduced chances of a drop in interest rates, and uncertainty over how U.S. President-elect Donald Trump will conduct foreign or economic policy. …

As Rishi Sunak assumes PM's office, Pound seems to be on recovery path
2 years, 2 months ago

As Rishi Sunak assumes PM's office, Pound seems to be on recovery path

India Today  

Hours after Rishi Sonak became Britain's third Prime Minister in two months on Tuesday, the British Pound witnessed a surge on improved risk sentiment and the dollar dipped to a three-week low. The announcement of former British PM Liz Truss's tax-cut policy sent the Pound Sterling crashing to a record low against the US Dollar last month. "Beyond a brief …

Pound rebounds to levels seen before mini-budget chaos as Chancellor U-turns
2 years, 3 months ago

Pound rebounds to levels seen before mini-budget chaos as Chancellor U-turns

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The pound has bounced back …

Sterling turns positive as dollar wavers and PM Truss defends economic plans
2 years, 3 months ago

Sterling turns positive as dollar wavers and PM Truss defends economic plans

The Hindu  

Sterling fell as much as 1% on Thursday before cutting losses and turning positive as the dollar wavered and British Prime Minister Liz Truss defended the government's economic plans. Truss said big tax cuts were the right path for Britain and refused to consider reversing the so-called "mini budget" laid out last week, which triggered chaos in markets. Adam Cole, …

British pound stabilizes, but turmoil still roils UK economy
2 years, 3 months ago

British pound stabilizes, but turmoil still roils UK economy

Associated Press  

LONDON — The British pound stabilized Tuesday as U.K. authorities tried to ease investor concerns after the biggest tax cuts in 50 years sent the currency tumbling to a record low and prompted some businesses to predict a devastating combination of a weak currency and rising interest rates. Late Monday, the central bank said it was “closely monitoring’’ financial markets …

The British pound has taken a tumble. What’s the impact?
2 years, 3 months ago

The British pound has taken a tumble. What’s the impact?

Associated Press  

LONDON — The pound is taking a pounding. “There’s every chance that a falling pound will make life more expensive,” said Sarah Coles, senior personal finance analyst at financial services firm Hargreaves Lansdown. “For anyone whose budget was already stretched to breaking point, this will mean even more pain at the tills.” Finance minister Kwasi Kwarteng hopes that big tax …

British pound, bonds roiled as tax-cut plans spook investors
2 years, 3 months ago

British pound, bonds roiled as tax-cut plans spook investors

Live Mint  

The selloff in U.K. financial markets accelerated on investors’ worries that the country’s largest tax cuts in decades would spark higher inflation and put government finances at risk. The market turbulence is shaping up as a major challenge for new U.K. Prime Minister Liz Truss, whose government has taken a sharp U-turn on economic policy compared with previous Conservative governments …

Tax cut plans pull British pound to four decade lows
2 years, 3 months ago

Tax cut plans pull British pound to four decade lows

The Hindu  

The British pound has resumed a slide against the U.S. dollar that picked up pace last week after the U.K.’s new government outlined plans to cut taxes and boost spending. Treasury chief Kwasi Kwarteng announced the sweeping tax cuts that he said would boost economic growth and generate increased revenue without introducing corresponding spending reductions. The news triggered the pound’s …

British pound plunges to new low against dollar as tax cuts spark concern
2 years, 3 months ago

British pound plunges to new low against dollar as tax cuts spark concern

LA Times  

The British pound has fallen dramatically against the dollar amid concern over the government’s plans to cut taxes and boost spending. The pound fell to an all-time low against the dollar early Monday after Britain’s new finance minister unveiled a sweeping package of tax cuts, fueling concerns about the government’s economic policy as the country teeters on the brink of …

Tax-cut plan pulls British pound to 40-year low against US dollar
2 years, 3 months ago

Tax-cut plan pulls British pound to 40-year low against US dollar

Al Jazeera  

British currency trades against the dollar at levels last seen in the early 1980s as the UK struggles to fight inflation. This is the pound’s biggest drop against the US dollar since March 18, 2020, when then-Prime Minister Boris Johnson announced the first nationwide lockdown to control the spread of COVID-19. Treasury chief Kwasi Kwarteng recently announced sweeping tax cuts …

British pound plummets to record low against the dollar
2 years, 3 months ago

British pound plummets to record low against the dollar

CNN  

CNN Business — The British pound crashed to a record low against the US dollar on Monday on growing fears about the stability of UK government finances. The currency slump follows British Chancellor of the Exchequer Kwasi Kwarteng’s announcement on Friday that the United Kingdom would implement the biggest tax cuts in 50 years at the same time as boosting …

Treasury minister claims mini-Budget has boosted pound – as it hits 37-year low
2 years, 3 months ago

Treasury minister claims mini-Budget has boosted pound – as it hits 37-year low

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Sterling dropped almost two cents against the dollar and fell against the euro – while …

UK tax-cutting gamble sends the pound plunging to new 37-year low
2 years, 3 months ago

UK tax-cutting gamble sends the pound plunging to new 37-year low

CNN  

London CNN Business — A huge gamble by the UK government aimed at rescuing the economy from recession and boosting long-term growth sent the pound plunging on Friday. Announcing the biggest tax cuts in 50 years at the same time as boosting spending, Finance Minister Kwasi Kwarteng said the government needed a “new approach for a new era, focused on …

British pound hits a 37-year low as UK economy skids
2 years, 3 months ago

British pound hits a 37-year low as UK economy skids

CNN  

London CNN Business — The British pound slumped to a 37-year low on Friday after new data showed that shoppers are pulling back spending as inflation squeezes household budgets, underscoring fears that the economy may already be shrinking. The currency fell below $1.14, its lowest since 1985, after the Office for National Statistics said that retail sales in August dropped …

The British pound hasn’t been this weak since Margaret Thatcher was prime minister
2 years, 4 months ago

The British pound hasn’t been this weak since Margaret Thatcher was prime minister

CNN  

New York CNN Business — The British pound fell to a 37-year low against the US dollar Wednesday as the United Kingdom grapples with a series of overlapping economic problems with no easy solutions. Meanwhile, Liz Truss is on her first full day in the job as the United Kingdom’s fourth prime minister since the Brexit vote in 2016, and …

Pound plunges to two-year low against dollar on fears for UK economy
2 years, 7 months ago

Pound plunges to two-year low against dollar on fears for UK economy

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

Brexit: Pound heading for a crash if Britain fails to get a trade deal
4 years, 1 month ago

Brexit: Pound heading for a crash if Britain fails to get a trade deal

CNN  

London CNN Business — The British pound could plunge by 10% or more if the United Kingdom does not finalize a trade deal with the European Union this weekend. Currency traders who once assumed a deal would be completed before a Brexit transition period ends on January 1 will be nervously watching events over the next 72 hours after British …

Pound tumbles against dollar and euro as Ireland roundly rejects Boris Johnson's Brexit plan
5 years, 3 months ago

Pound tumbles against dollar and euro as Ireland roundly rejects Boris Johnson's Brexit plan

The Independent  

Sign up to our free Brexit and beyond email for the latest headlines on what Brexit is meaning for the UK Sign up to our Brexit email for the latest insight Sign up to our Brexit email for the latest insight SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy …

UK currency volatile as investors try to gauge Brexit risks
5 years, 4 months ago

UK currency volatile as investors try to gauge Brexit risks

Associated Press  

LONDON — The pound on Tuesday touched its lowest level against the dollar since 1985, excluding a brief “flash crash” in 2016 that may have been caused by technical glitches, as international investors fret over a political showdown over Brexit this week. Brexit is facing a crucial few days as lawmakers challenge Prime Minister Boris Johnson’s insistence that the U.K. …

ALEX BRUMMER: Britain takes a pounding
5 years, 5 months ago

ALEX BRUMMER: Britain takes a pounding

Daily Mail  

The dilemma for Bank of England interest rate-setters as they head towards the August meeting and release of the Inflation Report gets tougher by the day. The sharp fall in sterling, as Britain's two prospective prime ministers harden their negotiating positions on Brexit, risks a disorderly few months ahead with the pound moving towards parity against the euro and the …

British pound falls amid Brexit fears
5 years, 10 months ago

British pound falls amid Brexit fears

CNN  

London CNN Business — The British pound trimmed some of the losses it suffered during volatile trading on Tuesday after UK lawmakers voted down the latest version of Prime Minister Theresa May’s deal on Brexit. Speaking to lawmakers just minutes after the vote, May said the default scenario is leaving the European Union without a deal on March 29. May …

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