British Pound Plummets to Record Low against the U.S. Dollar
The British pound crashed to a record low against the US dollar on Monday on growing fears about the stability of UK government finances.
The plunge of nearly 5% to just above $1.03 came during trading in Asia and Australia on Monday and extended a 3.6% dive from Friday, spurring predictions the pound could plunge to parity with the US dollar. It recovered slightly as European traders came online, rising back to $1.07.
The currency slump follows British Chancellor of the Exchequer Kwasi Kwarteng's announcement on Friday that the United Kingdom would implement the biggest tax cuts in 50 years at the same time as boosting government borrowing and spending.
Former Tory chancellor Lord Ken Clarke criticized the tax cuts on Sunday, saying they could lead to the collapse of the pound.
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