Pound slumps to record low against dollar

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Pound slumps to record low against dollar
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Imports of commodities priced in dollars, including oil and gas, could become more costly

If the pound stays at this low level against the dollar, imports of commodities priced in dollars, including oil and gas, will be more costly.

On Friday, Chancellor Kwasi Kwarteng announced a massive shake-up of UK taxes during a "mini-Budget". Speaking to the BBC on Sunday, Mr Kwarteng said he wants to keep cutting taxes as part of an effort to boost UK economic growth. Peter Escho, the co-founder of investment firm Wealthi, said: "All currencies are getting sold off against the US dollar, so there is a large element of US dollar strength. But with the pound, it has really been exacerbated by news that the new government will be cutting taxes, which is inflationary.

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