A looming recession, a disastrous energy crunch and the highest inflation among G7 nations has sent the pound sinking over the past year. It tumbled another half percentage point to a low of $1.1406 Wednesday, sinking below its March 2020 low when the Covid pandemic erupted onto the global stage.
The drop took the currency to its lowest level against the US dollar since 1985, when Margaret Thatcher was prime minister.
Meanwhile, Liz Truss is on her first full day in the job as the United Kingdom’s fourth prime minister since the Brexit vote in 2016, and she’s already staring down the barrel of a potential currency crisis. Truss is reportedly considering a £150 billion ($172 billion) commitment to cap surging energy prices that threaten to push millions of Britons in poverty this winter as the cost of living surges.
Yet she hasn’t said how the country plans to pay for the rescue. Truss campaigned on tax cuts and said Wednesday she opposes a windfall tax on energy companies that have