Business & Economy

Pound sterling falls lowest levels since 1971

London, Sep 26 (EFE).- The value of the pound sterling plummeted Monday against the United States dollar to its lowest level since 1971 after British Chancellor of the Exchequer Minister Kwasi Kwarteng said Sunday he could introduce more taxes in addition to those announced last week.

The United Kingdom’s currency lost 2.09 percent against the dollar at the opening of the market, up to $ 1.0568, 1.54 percent against the euro, up to EUR 1.0971, and 1.82 percent to the yen, up to JPY 152.0895.

However, early in the Asian market open, the pound had already fallen against the dollar by almost 5 percent to $ 1.0327, before subsequently recovering some value, raising fears among analysts that the currency could even reach parity with the dollar by the end of the year.

The pound’s value plummeted Friday after British Prime Minister Liz Truss announced a massive tax cut program valued at GBP 45 billion, the largest by the British government in 50 years.

The pound fell to a low not seen since 1985 after Kwasi Kwarteng said he would lower the highest bracket of income tax, from 45 percent to 40 percent, reduce the lowest bracket by one point, and raise corporate tax, among other measures. EFE


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