By Munachimso Obienyi
The British pound has resumed a slide against the US dollar after Britain’s new government outlined plans to cut taxes and boost spending.
Specifically, the pound yesterday at the close of transactions, fell by as much as 5 percent against the dollar at one point touching $1.0327, its weakest at least since the introduction of decimalisation in the early 1970s.
Recall the government had planned a tax-cut, however, this has sparked concerns that increased public borrowing will worsen the nation’s cost-of-living crisis.
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.
It closed at $1.0822 in London on Friday, from $1.1255 on Thursday. Prime Minister Liz Truss who ascended office less than three weeks ago, is racing to combat inflation which is at a nearly 40-year high of 9.9 percent, and head off a prolonged recession.
