The British pound has fallen to its lowest level against the U.S. dollar. The currency fell 0.64% to $1.145 on Wednesday afternoon, a level not seen since 1985.
The United Kingdom is said to be battling double-digit inflation, an energy crisis, and a possible recession.
Andrew Bailey, governor of the Bank of England highlighted that a weaker outlook for the UK economy as well as a stronger dollar were putting pressure on the sterling.
Bailey also warned that little could be done to stop the UK falling into a recession this year as the war in Ukraine continued.
The last time sterling fell to $1.14 was briefly in March 2020 and the Brexit result in 2016. The level of $1.1407 has not been seen since 1985, under Margaret Thatcher’s government.
The British pound has been hammered over recent months by surging inflation — currently at the highest level among all G-7 nations — and the prospects of a looming recession.
The appointment of Truss, who is widely expected to cut taxes and boost borrowing, has added to U.K. debt market concerns.