the value of the pound sterling plunged this Monday against the US dollar to its lowest level since 1971 after the British Chancellor of the Exchequer, Quasi Quarteng, insinuated yesterday that he does not rule out introducing more tax cuts in addition to those announced last week. The currency of United Kingdom lost today at the opening of the market 2.09% compared to dollarup to 1.0568 dollars, 1.54% against the euroup to 1.0971 euros, and 1.82% compared to yenup to 152.0895 yen.
However, early in the opening of the Asian market, the pound sterling had already fallen against the dollar almost 5%to $1.0327, before subsequently recovering some value, raising fears among analysts that the British currency could even reach parity with the US currency by the end of the year.
Last Friday the pound sterling already collapsed after the announcement of the Government of Liz Truss of a massive tax cut program valued at 50.8 billion euros, the biggest undertaken by the British Government in 50 years. Then, the pound fell to a minimum not seen since 1985 after revealing Quasi Quarteng which would lower the highest income tax bracket, from 45% to 40%, reduce the lowest bracket by one point, and raise corporate tax, among other measures.
If the minister did not want to assess then what the reaction of the markets to his fiscal declaration would be, yesterday he indicated that the cuts “favor citizens of the entire income scale” defending himself against those who reproach him that his cut plan mainly benefits the rich and hinted to the BBC that there could still be more such measures.