British pound tumbles to new all-time low against greenback

The British pound on Monday extended its losses to an all-time low against the U.S. dollar on Monday, falling as much as 4.7% to $1.035 after the Chancellor of the Exchequer Kwasi Kwarteng vowed more tax cuts.

On Friday, the new government led by Prime Minister Liz Truss announced a plan to bolster growth, including through several tax cuts and the cancellation of a planned corporate tax rate hike to 25%. In total, it is estimated that the plan will cost £45 billion (over $48.2 billion) by 2026-27.

Over the last four weeks, GBP/USD lost 9.37%.

Analysts said the recent falls in the currency reflected not just the broad strength in the dollar, but worries on the UK economy.