The British pound falls to a low against the dollar

British Pound

The British pound fell to its lowest level against the US dollar since 1985 on Wednesday.

The pound fell to $1.1407 in afternoon trading in London – a level not seen in 37 years – as investors reacted to the UK’s gloomy economic landscape with a new prime minister in charge.

British Prime Minister Liz Truss was officially appointed on Tuesday after succeeding Boris Johnson in a closely fought leadership race.

It inherits an economy on the brink of its worst cost-of-living crisis in a generation, with inflation reaching 10.1% in July.

The last time the pound fell to $1.14 was briefly in March 2020 and the Brexit result in 2016.

The $1.1407 level has not been seen since 1985, under Margaret Thatcher’s government.

The pound has been hit in recent months by rising inflation – currently the highest among all G-7 countries – and the prospect of a looming recession.

The appointment of Truss, who is widely expected to cut taxes and boost borrowing, has added to the concerns of the UK debt market.

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