Monday 26 September 2022 10:47 AM What does the plunging pound mean for YOU? Q&A as Sterling slumps to record low ... trends now
The pound has dropped to its lowest level against the dollar since decimalisation was started in 1971.
It sunk to just $1.0327, below even the 1985 baseline of $1.0545, sparking panic in some markets.
But some members of the public are unsure why this is causing such an effect and why it matters what the American currency stands at compared to the pound.
Here MailOnline looks at some of the key questions and what it could mean for you:
The pound is down eight per cent since Liz Truss was elected PM three weeks ago and down approaching 25 per cent since that start of the year. It is a similar story for the euro
As markets opened the pound tanked towards parity with the dollar before rising again to around $1.06
The Statue of Liberty over the scene of New York cityscape a popular destination from British tourists which will now be more expensive
America tourists could be attracted to the UK because their dollars will go so much further
Why has the pound dropped?
The pound has plummeted in direct reaction to Chancellor Kwasi Kwateng's so-called mini-budget on Friday, which announced the biggest tax cuts in the past 50 years.
Why has it got worse over the weekend?
While there was an initial fall after the chancellor's announcement, sterling started to rally slightly. However, Mr Kwateng's comments over the weekend saying more tax cuts were coming saw further falls.
Why does it matter - could things get worse?
It is widely expected that if the pound does not rally, the Bank of England will increase the interest rate, meaning debt will become more expensive, hitting many things including mortgages.
Will the plunging pound impact my travel?
Yes, as it has dropped so dramatically compared to the US dollar, it will hit hard-working families in the pocket, particularly if they are travelling abroad to America.
British Chancellor of the Exchequer Kwasi Kwarteng attends an interview with Laura Kuenssberg yesterday
Prime Minister Liz Truss delivers a speech to members of the United Nations in New York during her visit to the US on Wednesday
Will it just be travel to America that will be hit?
Clearly tourism to the States will be affected with holidays more expensive and services and goods when there subsequently pricier. But there will be
