# Pound hits record low after tax cut plans

By [jack chen](https://paragraph.com/@jack-chen-2) · 2022-09-26

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**The pound has fallen to a record low against the dollar as markets react to the UK's biggest tax cuts in 50 years.**

In early Asia trade, sterling fell close to $1.03 before regaining some ground to stand at about $1.06 on Monday morning, UK time.

Chancellor [Kwasi Kwarteng has promised more tax cuts](https://www.bbc.co.uk/news/business-62966306) on top of a £45bn package he announced on Friday amid expectations borrowing will surge.

The pound has also been under pressure due to strength of the dollar.

The euro also touched a fresh 20-year-low against the dollar in morning Asia trade amid investor concerns about the risk of recession as winter approaches with no sign of an end to the energy crisis or the war in Ukraine.

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*Originally published on [jack chen](https://paragraph.com/@jack-chen-2/pound-hits-record-low-after-tax-cut-plans)*