The Pound fell to 1.14922 against the dollar in late morning trading on Wednesday as the dollar strengthened.
The Sterling hit a low of 1.14545 earlier in the morning, marking a fall from its high of 1.1609 on Tuesday after reports emerged regarding new Prime Minister Liz Truss’ £130 billion relief plan to freeze or reduce energy bills for UK households.
The Pound has so far taken a 15% blow against the dollar year-to-date as the Ukraine war continues to rain bad news on the European continent.
Rising energy prices and food cost inflation have triggered a cost of living crisis which has only exacerbated the double hangover of Covid and Brexit, the effects of which are still impacting the UK.
The currency was also weakened as analysts pointed out the uncertain effect of Truss’ energy policy combined with the next Bank of England interest rates move.
“The net impact of support measures may not be too straightforward as they may easily get mixed in with the implications for BoE policy,” said ING analysts.
Meanwhile, the US dollar index reached a 20-year high of 110.69 earlier on Wednesday.
