The pound sank to an all-time low against the dollar this morning, and the Bank of England is expected to make a statement this afternoon after calls from the City for immediate intervention to halt Britain’s slide into a currency crisis.
Sterling dropped by 4.9 per cent to $1.0327 — its lowest level since decimalisation in 1971 — as trading opened in Asian markets for the first time since Kwasi Kwarteng, the chancellor, unveiled £45 billion of unfunded tax cuts in an emergency mini-budget on Friday.
The pound regained some ground to $1.07 by mid-morning as trading volumes increased. In a signal that the fall is not simply an indication of dollar strength, the pound also fell 2.4 per cent against the euro to €1.0887.
“Sterling is getting absolutely hammered,” Chris Weston, head of research at Pepperstone, a foreign exchange broker, said. “Investors are searching out a response from the … Read more