By Kosaku Narioka
The British pound fell to a record low against the dollar in early Asian trade on Monday as selling continued after the U.K. government on Friday unveiled the country’s biggest tax cuts since the early 1970s.
The pound briefly fell below $1.04, hitting a record low, according to data on CQG. Its previous all-time low was around $1.05 marked in 1985.
The new government measures are aimed at kick-starting growth at a time of global economic turmoil, but they raised concerns among investors about the impact on inflation and the longer-term sustainability of U.K. finances.
Meanwhile, the dollar has been rising across the board as the Federal Reserve continues its aggressive rate increases to help control inflation. The U.S. central bank last week approved its third consecutive interest-rate rise of 0.75 percentage point and signaled additional large increases were likely.
The euro fell below $0.9600 earlier in the day, its lowest level since June 2002.
Write to Kosaku Narioka at [email protected]
