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An economist has warned that “nothing has changed” despite the pound continuing to rise against the dollar, after 11 days of market turmoil. On September 23, Chancellor Kwasi Kwarteng announced tax cuts for the rich in his mini-budget, which caused the pound to plummet to record lows.
The pound then began to climb again yesterday after Mr Kwarteng U-turned on these plans.
At the time of writing £1 is equal to $1.14, up from $1.12 yesterday. However, despite this, an economist has warned that “nothing has changed”.
Amo Sahota, director at Klarity FX in San Francisco, said: “Sterling is getting a boost as the UK tries to reverse some of its tax cuts.
“But the big macroeconomic themes have not changed, so take this for what it is, it’s a new quarter and an opportunity for a bounce in equities and a little unwinding of the US dollar.”
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