Pound hit 37-year low ahead of tax cuts announcement ‎

The British pound fell on Friday to its lowest level in 37 years against the US dollar, before the expected announcement of the new British finance minister details of tax cuts and energy subsidies, worth close to two hundred billion pounds ($225 billion).

According to “Reuters”, the pound fell about 0.6% to $ 1.1170, its lowest level since 1985, while it settled against the euro at 87.40 pence per euro.

The strength of the dollar affected the performance of all major currencies during the past months.

Minister Kwasi Quarting hopes his policies will boost growth and break the “cycle of stagnation”, although some fear that the amount of spending could put the pound under additional pressure.