The British pound fell to an all-time low against the dollar, while the pound also fell against the euro.
The move comes after the British government announced massive tax cuts that will be paid for by borrowing billions of pounds.
A foreign news agency According to the report Stock markets around the world also fell as fears of higher interest rates put a lot of pressure on the financial system.
At one point in Asian trading markets, the pound fell nearly 5 percent to $1.0327, below a 1985 low.
The British pound fell nearly 5 percent to $1.0327 from a 1985 low at one point in Asian trade. The British currency last recovered as high as $1.072.
Remember that the value of the pound affects everyone from shoppers to business owners and investors, just as rising prices of the things we buy affect household budgets.
This is because if the value of the pound is low, the cost of goods bought from abroad also increases, for example gas, food and technology used in the UK are paid for in dollars. goes
Technology such as mobile phones, or cars made overseas can be more expensive, even things made in the UK can cost more if parts are bought from other countries.
British Chancellor of the Exchequer Kwasi Quarting announced on Friday that he is canceling the planned increase in corporate taxes in addition to scrapping the current rate of income tax.
Why has the pound fallen?
British Broadcasting Corporation The BBC Investors around the world buy and sell large amounts of foreign currency, with the goal of making a profit by hoping that the currency bought will be worth more than the currency sold.
The pound fell on Friday after the government announced huge tax cuts in the mini-budget.
Jane Foley from Rabobank said this is because investors are selling the pound because they have doubts about the government’s plans.
He said he is concerned that some of these tax cuts that have been announced will not be fully funded.