British pound plummets to record low against the dollar | CNN Business

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British pound plummets to record low against the dollar | CNN Business
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The British pound plummeted to a record low against the dollar -- spurring predictions it could plunge to parity with the US dollar in the coming months.

The slide came as trading opened in Asia and Australia on Monday, extending a 2.6% dive from Friday — and spurring predictions the pound could plunge to parity with the US dollar in the coming months. The unprecedented currency slump follows British Chancellor of the Exchequer Kwasi Kwarteng’s announcement on Friday that the United Kingdom would impose the biggest tax cuts in 50 years at the same time as boosting spending.

The soaring US dollar also sent major Asian currencies tumbling on Monday. Asian markets and currencies crack China’s yuan slid 0.5% on the onshore market to the lowest level in more than 28 months. The offshore yuan fell 0.4%. The rapid declines prompted the People’s Bank of China to impose a risk reserve requirement of 20% on banks’ foreign exchange forward sales to clients, starting Wednesday.

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