Friday 30 September 2022 08:32 AM The pound bounces back: Sterling recovers from its losses trends now
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The pound fought back on the global currency markets today after it was pummelled to an all-time low against the US dollar.
The pound rose as much as 0.8 per cent against the dollar to $1.222 this morning in Asia, putting it in touching distance of where it was before Chancellor Kwasi Kwarteng delivered last week's controversial mini-Budget.
In an effort to reassure financial markets, Liz Truss and Mr Kwarteng are holding crunch talks today with Britain's spending watchdog, the Office for Budget Responsibility.
Ms Truss has vowed to push ahead with the growth agenda despite rising anxiety on Tory benches - especially after a shock YouGov poll last night showed Labour with a 33-point lead.
A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea
Like other currencies around the world, sterling has been crushed by the dollar this year as the US Federal Reserve acts to tame sky-high inflation through higher interest rates.
The dollar has also benefited from its status as a safe asset in times of economic strife.
But the pound took an aggressive lurch downwards in the wake of the mini-Budget as investors fretted over £45bn of unfunded tax cuts and a cap on energy bills that could cost £100bn.
The Bank of England also faced criticism for acting too slowly and meekly to combat inflation, which this summer topped 10pc for the first time in four decades.
