Latest News

British Pound Reaches Historic New Low Against S’pore Dollar After UK Announces Tax Cut Plans

British Pound Drops To Record Low Against Singapore Dollar After Tax Cut Plans

With the British Pound (GBP) dropping to a new historic low against the Singapore Dollar (SGD), it might be time to book that long-awaited trip to London.

Last Thursday (22 Sep), it fell to a low of £1 to S$1.59.

Now, the currency has dropped yet again to another historic low of £1 to S$1.53.

The fall in the exchange rate comes in the wake of tax cuts in the country, which may force the Bank of England to take emergency action.

British Pound drops to historic low against Singapore Dollar

According to an online currency converter, the exchange rate between GBP and SGD fell to a new low on Monday (26 Sep).

Source: XE

Every £1 is now equivalent to S$1.53 in an exchange rate that has experienced a drop larger than the 47% fall reported on 22 Sep.

Earlier this year, The Business Times reported that the GBP could fall to as low as S$1.65 for every pound.

At S$1.53, the currency has now dropped far lower than its projected expectations.

Record lows due to tax cuts

According to BBC, such a phenomenon can be attributed to the United Kingdom (UK) imposing its biggest tax cuts in 50 years.

 

Source: Lucas Davies on Unsplash

Britain’s Chancellor of the Exchequer Kwasi Kwarteng also promised more tax cuts in addition to a £45 billion package, alongside expectations of an increase in borrowing.

This, in conjunction with the strength of the US dollar, has caused the pound to fall in value.

A separate report by BBC also cited several other factors contributing to the historic drop of the GBP — for instance, weak retail sales, high prices, and soaring energy costs.

In addition, the fluctuations reflect the confidence that people are feeling with regard to the country’s economic prospects.

The fall in the GBP, however, may not last long.

Investors speaking to BBC said the Bank of England might implement emergency measures to stop the lowering of the currency.

“An emergency meeting rate hike could happen as soon as this week to regain credibility in the market,” Stephen Innes, managing partner at SPI Asset Management, told BBC.

Have news you must share? Get in touch with us via email at news@mustsharenews.com.

Featured image adapted from Julia on Flickr and Yun Huang Yong on Flickr.

Sudeshna Dhar

Sudeshna is a lover of all romcoms, especially Gone Girl (2014).

Recent Posts

Tampines HDB lifts malfunctioned due to rain on 22 Nov, workers rushed to repair elevators

One elevator is now functional while repairs on the second are expected to complete by…

23 Nov 2024, 10:39 am

2 community cats die after being hit by cars in Marine Terrace, caregivers seeking footage

The driver who hit one of the cats purportedly denied doing so and behaved angrily.

23 Nov 2024, 1:33 am

‘Tiger Candy’ contains erectile dysfunction medicine, may cause painful & exceedingly long erections: SFA

It has been marketed online as a candy that helps with male sexual enhancement.

23 Nov 2024, 12:11 am

Pop Mart pursuing legal action over unauthorised use of Labubu images by certain brands

"POP MART does not have any official licensed partners in Singapore," it said.

22 Nov 2024, 11:25 pm

Heavy rain on 22 Nov causes flash floods in Yishun & Potong Pasir, 127.7mm recorded in northern S’pore

51% of Singapore's average monthly rainfall in November fell in northern Singapore over less than…

22 Nov 2024, 10:27 pm

Pilot treats passengers to pizzas after emergency landing causes hours-long delay in the US

He made sure all the passengers were served before taking a slice for himself.

22 Nov 2024, 6:32 pm