Support 110 years of independent journalism.

  1. Chart of the Day
26 September 2022

How the pound has plummeted against the dollar

Sterling is now worth just $1.07 – a fall of almost 10 per cent in one month.

The pound has fallen to a 37-year low against the dollar after the Chancellor, Kwasi Kwarteng, outlined the new government’s plans in his mini-budget last week.

Sterling slumped following the announcement of £45bn of tax cuts directed at higher earners amid investor concerns over the large rise in public borrowing that will be needed to fund Kwarteng’s programme. At the time of writing, the pound was worth $1.07 – a fall of almost 10 per cent in one month.

The decline follows a longer-term fall in the pound against the dollar reflecting concerns about the UK economy as well as a stronger US dollar. 

Last week’s tax cut announcement also caused the pound to fall against other currencies. On 23 September, sterling lost over 1 per cent against the euro, which itself has been hit by concerns around energy security and recession in Europe, as well as the prospect of a far-right government in Italy following its general election yesterday (26 September).

Among other things, a weaker pound means that UK consumers will face higher prices for imported goods and services including food, as well as oil and gas, which are priced in dollars.

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday - from the New Statesman. The New Statesman's quick and essential guide to the news and politics of the day. Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.

[See also: Financial markets have rejected the Tories’ economic vandalism]

Content from our partners
What is the point of inheritance tax?
How to win the next election? It's the data, stupid
Businesses must unlock the regional growth agenda

Topics in this article : , , ,