The pound sterling plunges again against the dollar, a sign of recession?

HASfter the euro, it’s sterling’s turn to plunge against the dollar, raising fears for the worst for the UK, which may already be in recession. On Monday, September 26, the pound sterling indeed reached a record low against the dollar, with the budget announcements from London worrying investors about the health of British public finances. Facing a resilient dollar thanks to its safe-haven status, the pound plunged to $1.0350 around 1:25 a.m. GMT from $1.0859 as of 9 p.m. GMT on Friday, Bloomberg data showed, with analysts warning that it could even reach parity with the greenback.

Investors turned away from the pound after the announcement of budgetary measures by the new British Finance Minister, Kwasi Kwarteng, combining massive aid for energy bills and all-out tax cuts, the dizzying cost of which has not been fully disclosed. .

READ ALSOLuc de Barochez – The United Kingdom plunges into the unknown

Operators very worried

The whole should force the United Kingdom to borrow an additional 72 billion pounds on the markets, which worries operators.

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On Monday, the trend was still down, with the minister saying further action was expected. This sent the London markets into the abyss, with the FTSE index losing around 2%.