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Pound slumps to all-time low against dollar

The Annapurna Express

The Annapurna Express

Pound slumps to all-time low against dollar

The pound has fallen to its lowest level against the US dollar since decimalisation in 1971, BBC reported.

In early Asia trade, sterling fell by more than 4% to $1.0327 before regaining some ground to around $1.05.

That came after UK Chancellor Kwasi Kwarteng unveiled historic tax cuts funded by huge increases in borrowing.

The pound has also been under pressure as the dollar has been boosted by the US central bank continuing to raise interest rates.

The euro also touched a fresh 20-year-low against the dollar in morning Asia trade amid investor concerns about the risk of recession as winter approaches with no sign of an end to the energy crisis or the war in Ukraine.