British Pound Hits Record Low Against Dollar Amid Recession Fears

The pound sterling reached its lowest level against the dollar in the early hours of Monday on fears of a deep recession in the United Kingdom, after the The new finance minister, Kwasi Kwarteng, presented a controversial tax reduction plan.

The pound fell to $1,035 in Asian morning trade, according to data from Bloomberg. and some commentators warned that it could reach parity with the US currency.

Investors began selling pounds on Fridayit is after Kwarteng presented the plan to cut taxes to revive the ailing British economy.

Sales continued on Monday after it said it intends to make further reductions, despite the stir it caused in the London markets, where the FTSE 100 fell nearly 2%.