Di pound don make record as e fall to a record low against di dollar as markets dey react to UK biggest tax cuts in 50 years.
For early Asia trade, di sterling slip just below $1.04 – di lowest level since decimalisation for 1971 – before e regain some ground to about $1.05.
Dis wan happun afta Chancellor Kwasi Kwarteng unveil historic tax cuts wey dey funded by di big increases in borrowing.
Di pound bin also dey under pressure as di dollar get boost by di US central bank wey continue to raise rates.
Di euro also touch a fresh 20-year-low against di dollar for morning Asia trade sake of investor concerns about di risk of recession as winter dey near with no sign of an end to di energy crisis or di war for Ukraine.
If di pound stay for dis low level against di dollar, imports of commodities wey dem dey price for dollars, including oil and gas, go dey more costly.
Oda goods from di US fit also dey considerably more expensive and British tourists wey dey visit America go see say dia holiday money no go go as far as before di sterling fall.
Investors go dey watch di pound movements closely as financial markets open for di UK, Europe – and later on Monday – di US.
Peter Escho, di co-founder of investment firm Wealthi, say: “All currencies dey sell off against di US dollar, so e get big element of US dollar strength. But wit di pound, e don really worsen by news say di new goment go dey cut taxes, wey fit mean inflation.
“Add to dat, di recent energy subsidies and news say di Bank of England fit need to get emergency rate-hike meeting, e all go result in a sense of panic,” e add.
Some investors tink say di Bank of England go dey forced to take emergency action to stop di pound fall.
“To stop di bleeding even temporarily, di BOE fit enta ‘whatever it takes’ territory to bring inflation down. Emergency meeting rate hike cfit happun as soon as dis week to regain credibility for di market. We fit even see a hike today,” Stephen Innes, managing partner for SPI Asset Management tell BBC.
Wetin happun to di pound?
Di pound fall in response to di UK goment huge tax cutting mini-budget.
Jane Foley, oner currency strategist for Rabobank, say di sell-off show say investors get doubts about di goment plans.
“Dem dey worried say some of dis tax cuts wey dem don announce no go dey fully funded. E go result in a large amount of debt at a time wen di Bank of England go dey sell some of im holdings of UK goment debt,” she tok.
Di pound bin already dey slide against di dollar in di weeks before di mini-Budget, partly sake of di strength of di US dollar.
E bin dey trading at $1.135 earlier for September – di first time e bin fall below di $1.14 mark in nearly four decades.
Di trend na sake of rising prices and rising energy costs wey don continue to squeeze pipo accounts.
Di cost of living dey rise at its fastest rate in 40 years, with food, fuel and energy prices wey all done go up.
Dis year, di pound don fall more against di dollar dan oda currencies. Na di worst annual fall against di dollar since Britain vote to comot European Union (EU) for June 2016.
