British pound dives to 37-year low against stronger dollar

Sterling falls to $1.14 on Wednesday afternoon, lowest level since 1985

By Tuba Sahin

ANKARA (AA) - The British sterling fell to its weakest level against the greenback since 1985 amid a dire economic outlook and soaring US dollar.

The pound decreased to $1.14 on Wednesday afternoon, a 37-year low.

The British pound has lost more than 15% against the US dollar since the beginning of this year as the country is dealing with surging inflation and high energy bills.

Meanwhile, political uncertainty was cooled after Liz Truss won the Tory race and became the new UK prime minister.

Truss is expected to announce a major package of support on Thursday to tackle soaring energy costs, which includes £130 billion to freeze household bills.

According to the latest data, annual consumer inflation in the UK rose to double digits for the first time in 40 years, hitting 10.1% in July.

In August, the Bank of England on Thursday hiked interest rates 50 basis points to 1.75%, the biggest rise in 27 years.

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