The British pound reached an all-time low against the US dollar on Monday.
The development is coming less than a week since the pound plummeted to $1.13 — its lowest level since 1985 — before regaining ground.
The pound dropped 3.6 percent on Friday when UK’s finance minister, Kwasi Kwarteng unveiled historic tax cuts funded by the biggest increase in borrowing since 1972.
On Monday, the currency slumped further as much as 4.9 percent to $1.0327 before stabilising around $1.05425.
Kwarteng had revealed that there would be more tax cuts, adding that the cuts were “just the start”.
The finance minister added that the idea was to put “more money into people’s pockets” as he defended the £45 billion worth of tax-cutting measures announced last week.
Speaking on Sunday With Laura Kuenssberg programme on BBC, Kwarteng said there is also reverse on increased national insurance, adding that the aim is to ensure the people have more income.
