The pound fell to a record low against the dollar following the announcement of the biggest tax cut in 50 years.
At the opening of the FTSE this Monday 26/09/2022, United Kingdom time, the pound sterling was quoted at 1.07 dollar worse, at the opening of the markets in Asia, it was trading at 1.03 dollar, which is a low historical value.
The decline follows the announcement of further tax cuts in addition to a £45 billion package announced on Friday as borrowing is expected to increase.
If the pound remains at this low level against the dollar, imports of commodities denominated in dollars, including oil and gas, will be more expensive and inflation is likely to persist or even intensify.