(MENAFN) The British pound has restarted its decline against the US dollar following the announcement of Britain's new government's plans to cut taxes and increase spending.
It fell as low as $1.0349, its lowest level ever, early Monday, but recovered to $1.0671. It is now trading at levels not seen since the early 1980s.
Concerns have been raised by the government's tax-cut plan that increased public borrowing will exacerbate the country's cost-of-living crisis.
The pound has dropped the most against the US dollar since March 18, 2020, when then-Prime Minister Boris Johnson announced the first nationwide lockdown to combat the spread of COVID-19.
On Friday, it closed at $1.0822 in London, down from $1.1255 on Thursday.
Prime Minister Liz Truss, who came into office less than three weeks ago, is racing against the clock to combat inflation, which has reached a nearly 40-year high of 9.9 percent, and avert a prolonged recession. She must deliver results quickly because she faces a general election in two years.
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