CNBC: Sterling hits record low against the dollar, as Asia-Pacific currencies also weaken
* Sterling’s plunge comes after last week’s announcement by the new U.K. government that it would implement tax cuts and investment incentives to boost growth.
* Critics say those economic measures will disproportionately benefit the wealthy and could see the U.K. take on high levels of debt at a time of rising interest rates.
The British pound plunged to a record low on Monday morning in Asia, following last week’s announcement by the new U.K. government that it would implement tax cuts and investment incentives to boost growth.
Sterling briefly fell 4% to an all-time low of $1.0382 on Monday, continuing its sluggish trade in recent months as the U.S. dollar strengthens. The U.K. currency last traded down about 1.5% $1.069 against the greenback.
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WNU Editor: With the exception of the Russian ruble, every currency in the world is now being crushed by the US dollar. The devastation that this is causing, especially for countries that are dependent on imports based on the U.S. currency (i.e. oil), is crippling.
Expect higher inflation, higher interest rates, greater costs when it comes to debt servicing, and a lower stock market. Bottom line. Here comes a recession.
As for the U.S.. While imports are now cheaper, their exports are being priced out of the market.
UK Pound Has Fallen To A Record Low Against The US Dollar
British pound hits record low against US dollar -- Euronews/AP
Pound hits all-time low against dollar after mini-budget rocks markets -- The Guardian
The pound’s crash will make inflation worse and push interest rates higher -- CNN
Pound tanking, massive tax cuts and talk of emergency hikes. Here’s what’s going on in the UK -- CNBC
British pound crashes to record low — in 6 charts -- Politico
Falling pound: What does it mean for me and my finances? -- BBC