Pound to dollar

2022 - 9 - 23

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Image courtesy of "The Independent"

Pound plummets to 37-year low as Kwarteng unveils 'growth plan ... (The Independent)

The pound dropped to a fresh 37-year low against the dollar as the chancellor unveiled tens of billions of pounds of tax cuts and spending.

Governments borrow money by selling gilts, a sort of IOU, on international markets. [pound](/topic/pound) dropped to a fresh 37-year low against the dollar as the chancellor unveiled tens of billions of pounds of tax cuts and spending. [Terms of use,](https://www.independent.co.uk/service/user-policies-a6184151.html) [Cookie policy](https://www.independent.co.uk/service/cookie-policy-a6184186.html) and [Privacy notice.](https://www.independent.co.uk/service/privacy-policy-a6184181.html) [Privacy policy](https://policies.google.com/privacy?hl=en) and [Terms of service](https://policies.google.com/terms?hl=en) apply. This site is protected by reCAPTCHA and the Google By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Registration is a free and easy way to support our truly independent journalism “With the Bank of England committed to reducing its gilt portfolio, the prospect of indigestion in the gilt market is a real one and one which should keep sterling vulnerable.” The cost of the combined homes and business energy bills bailout alone comes to around £60bn in the first six months, with the government having to borrow most of the money to cover the cost. By terming it a “fiscal event” rather than a full Budget, Mr Kwarteng avoided the immediate scrutiny and forecasts of the Office for Budget Responsibility. It comes after the Bank of England launched another 0.5 percentage point interest rate hike to 2.25 per cent on Thursday and warned the UK could already be in a recession. [Sterling](/topic/sterling) declined by 0.89 per cent to 1.115 US dollars as Kwasi Kwarteng outlined his [ “growth plan” for the UK economy](https://www.independent.co.uk/news/uk/politics/mini-budget-today-kwasi-kwarteng-stamp-duty-truss-latest-b2173590.html) on Friday morning.

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Image courtesy of "CNBC"

British pound plunges, bonds sink after government announces tax ... (CNBC)

The embattled British pound fell more than 2% against the dollar, after the new U.K. government announced a radical economic plan in a bid to boost growth.

With the U.K. S&P Global said it meant the bloc was likely to enter a recession. - Friday's measures were billed by the government as heralding a new era for the U.K. Paul Johnson, director of the Institute for Fiscal Studies, said markets appeared "spooked" by the scale of the "fiscal giveaway," and said it represented the highest level of tax cuts in half a century. "The obvious implication is that BOE rates are likely to be higher for longer than they would have been otherwise. economy was likely already in a recession as it raised interest rates by 50 basis points. [British pound](https://www.cnbc.com/quotes/GBP=) fell 3.5% against the dollar Friday, after the new U.K. Yields on 2-year U.K. The U.K. Yields move inversely to prices. bonds amid a rise in expected government debt. Friday's measures were billed by the government as heralding a new era for the U.K.

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Image courtesy of "Financial Times"

Pound hits 37-year low against dollar on huge UK tax cut 'gamble' (Financial Times)

UK government bonds sold off sharply and the pound hit a new 37-year low against the dollar as investors worried that Kwasi Kwarteng's tax cuts and energy ...

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Image courtesy of "The Guardian"

Pound falls to 37-year low against dollar as mini-budget puts ... (The Guardian)

Kwasi Kwarteng's tax-cutting mini-budget has sent financial markets into a tailspin, with UK government borrowing costs soaring and the pound slumping to a ...

At the start of September, yields on benchmark UK sovereign debt have risen by almost one percentage point, significantly more than for comparable advanced economies. “Price action in UK gilts is going from bad to worse. [FTSE](https://www.theguardian.com/business/ftse) 100 fell more than 2% to trade below 7,000 for the first time since early March, after Russia’s invasion of Ukraine, while the cost of borrowing for the UK government on international markets rose by the most in a single day for more than a decade. Antoine Bouvet, a senior rates strategist, and Chris Turner, the global head of markets at the Dutch bank ING, said the conditions amounted to a “perfect storm” for the UK as global markets shun sterling and gilts. [ announced £45bn of tax cuts](https://www.theguardian.com/uk-news/2022/sep/23/kwasi-kwarteng-announces-sweeping-tax-cuts-in-mini-budget) directed at higher earners, trading close to a symbolic $1.10 against the US dollar for the first time since 1985. [tax-cutting mini-budget](https://www.theguardian.com/uk-news/2022/sep/23/kwasi-kwarteng-mini-budget-key-points-at-a-glance) has sent financial markets into a tailspin, with UK government borrowing costs soaring and the pound slumping to a 37-year low against the dollar.

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Image courtesy of "DailyFX"

GBP/USD Slide Continues, 'Mini Budget' Gets a Distinctly Lukewarm ... (DailyFX)

The British Pound continues to languish at levels not seen since the mid-1980s as inflation and growth worries continue to glower.

[USD](https://www.dailyfx.com/usd) bulls. [Starts in:Live now:Sep 26( 12:09 GMT )Weekly Scalping Webinar](https://www.dailyfx.com/webinars/176946155) [GBP/USD BearishData provided by of clients are net long. That channel itself is merely an extension of the long slide seen since June, 2021, and came into force following the modest bullish fightback seen between July and August of this year. However, its half-basis point increase was weaker than that enacted by the Fed, and Credit Suisse predicted that this restricted ability to act would see But the Pound has been especially hard-hit thanks to rampant inflation and flatlining growth.

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