Pound rises as the tax cut plan is abandoned and Yen declines

The pound rose on Monday after Britain announced a plan to scrap the country’s highest income tax rate, while the yen slipped from the 145 level against the dollar.

And sterling touched $ 1,128, after media reports that the plan was reversed, the highest rate of the currency since September 22, the day before British Finance Minister Kwasi Quarting announced a new “growth plan” that cut taxes and restrictions funded by extensive government borrowing, which sowed turmoil in markets.

And sterling in the latest trading rose 0.2 percent to 1.1188 dollars.

In Asia, the Japanese yen fell to 145.40 against the dollar, exceeding 145 yen to the dollar for the first time since September 22, after the government intervened to support the currency.

The yen was last down 0.24 percent to 145.10.

Monday’s decline came after Japanese Finance Minister Shunichi Suzuki said Tokyo is ready to take “decisive” steps in the foreign exchange market if the yen’s excessive moves continue.

The Japanese currency fell after the Bank of Japan stuck to very low interest rates as interest rates rose around the world. After much speculation, the authorities stepped in with a record 2.8 trillion yen ($19.7 billion) spending to prop up the yen.

The euro fell 0.2 percent to $0.97785, amid data that showed a further decline in manufacturing activities across the eurozone last month.

Reuters and other media reports that the OPEC + group is discussing possible oil production cuts of more than one million barrels per day also affected the currency, given the precarious energy situation in Europe.

However, this news gave a small boost to the Norwegian krone and the Canadian dollar, with the US dollar down nearly 0.5% against both currencies.

Meanwhile, the Australian and New Zealand dollars gained ahead of the expected rate hikes by the two central banks during the week.

The Australian rose 0.6 percent to $0.645, while the New Zealander rose one percent to $0.5655.