Pound plunges to fresh 37-year-low as Kwasi Kwarteng announces ‘growth plan’

The pound (GBPUSD=X) dropped to a fresh 37-year-low against the dollar on Thursday as UK chancellor Kwasi Kwarteng unveiled the government's "growth plan" for the UK economy.

Sterling declined by 0.89% to $1.115 against the greenback, meaning it has shed 17% against the US currency so far this year.

It comes after Bank of England delivered another 0.5% interest rate hike to 2.25% on Thursday and warned the UK could already be in a recession

Kwarteng announced tens of billions of pounds of increased spending and tax cuts in the mini-budget on Friday.

The tax cuts, which will reduce government income, come as Britain is expected to spend heavily to subsidise energy bills for households and businesses.

The chancellor said the energy support scheme would cost £60bn in its first six months.