Pound falls to record low versus the dollar, crude oil declines to nine-month low [Video]
|GBPUSD fell to a record low on Monday, as markets continued to react to the British government's decision to make an array of significant tax cuts.
Following last week’s 50 basis point hike by the Bank of England, Finance Minister Kwasi Kwarteng moved to adjust income tax in the UK.
The move came as it is widely believed that Britain is now in an economic recession, as a result of record levels of inflation.
Speaking today after the recent decline of the Pound, BOE Governor Andrew Bailey stated that, “The Bank is monitoring developments in financial markets very closely in light of the significant repricing of financial assets”.
GBPUSD fell to a low of $1.035 on the news.
Crude oil declines to 9-month low
Crude oil slipped to a nine month low to start the week, as the U.S. dollar continued to strengthen.
The rise in the U.S. dollar, which is the base currency for crude oil means that the cost of importation is higher for foreign nations.
As a result of this, demand for the energy has declined, despite the tightening of supply coming from Russia.
Although OPEC+ have opted not to significantly increase output, it seems the cartel is having issues with its agreed distribution levels.
In August, figures showed that OPEC+ had missed its target by 3.58 million barrels per day in August.
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