Sterling has hit its lowest level against the dollar since decimalisation in 1971, falling by more than 4 per cent to just 1.03 dollars in early Asia trading before it regained some ground to about 1.07 dollars earlier today (Monday, 26 September).
The euro also hit a fresh 20-year low against the dollar amid recession and energy-security fears ahead of what is expected to be a painful winter across Europe, with the war in Ukraine showing no sign of ending.
Experts warned that the pound’s plunge towards parity with the dollar will send the cost of goods soaring even higher, potentially worsening the cost-of-living crisis. The pound's fall also means it will be more expensive for the government to borrow money - just when it has decided to borrow billions more.
Shadow chancellor Rachel Reeves accused chancellor Kwasi Kwarteng and prime minister Liz Truss of recklessly gambling with the UK’s finances.
The Labour MP told Times Radio: “Instead of blaming...