British pound plunges below $1.11 after new government announces tax cuts

The embattled British pound fell 1.6% Friday against the dollar, aft the caller U.K. authorities announced a radical economical plan successful a bid to boost growth.

Sterling dipped arsenic debased arsenic $1.1077 astatine 11:33 a.m. London time, astir an hr aft the measures were unveiled successful the House of Commons.

The lb has been connected a precipitous autumn against the greenback this year, hitting levels this period that it was past astatine successful 1985. Friday's measures were billed by the authorities arsenic heralding a caller epoch for the U.K. focused connected growth, and included a premix of taxation cuts and concern incentives for businesses.

The Bank of England said Thursday that the U.K. system was apt already successful a recession arsenic it raised involvement rates by 50 ground points.

The euro was besides down against the dollar Friday morning, falling 0.8% connected the time to $0.976 aft a merchandise showed the euro zone's Purchasing Managers' Index fell to 48.2 successful September. S&P Global said it meant the bloc was apt to participate a recession.

The dollar has been boosted this twelvemonth by equity marketplace volatility and Federal Reserve involvement rate rises.

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