Sterling falls to its lowest level in 37 years before announcing details of tax cuts

Sterling fell on Friday to a 37-year low against the dollar before the expected announcement of the new British finance minister details of tax cuts and energy subsidies worth close to two hundred billion pounds ($225 billion).

The pound fell about 0.6 percent to $ 1.1170, its lowest level since 1985, while it settled against the euro at 87.40 pence per euro.

The dollar’s strength affected the performance of all major currencies over the past months.

Minister Kwasi Quarting hopes his policies will boost growth and break the “stagnation cycle”, although some fear that the amount of spending could put sterling under additional pressure.