The daily business briefing: September 26, 2022

The British pound falls to a record low against the dollar, OECD estimates Russia's war in Ukraine to cost global economy $2.8 trillion, and more

British pound banknotes
(Image credit: Rasid Necati Aslim / Anadolu Agency)

1. British pound falls to record low against dollar

The British pound fell more than 4 percent on Monday to a record low of $1.035 against the U.S. dollar. The plunge in early trading in Asia came after a 2.6 percent fall on Friday as British Chancellor of the Exchequer Kwasi Kwarteng announced that the United Kingdom would increase spending while imposing the biggest tax cuts in 50 years. Former Tory chancellor Lord Ken Clarke warned Sunday the tax cuts could trigger a collapse of the currency. The previous record low for the pound was $1.054 in 1985. The euro also hit a 20-year low of 0.965 per dollar. Weak economic data and concerns about Russia's war in Ukraine have boosted the dollar, a safe haven in uncertain times.

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.