Pummeled pound faces long road back as investor confidence shredded

LONDON – Sterling’s slide to record lows leaves it staring at parity with the dollar. Whether or not it hits the symbolic level, investors say Britain’s new government has dealt such a blow to the UK’s standing with markets that rebuilding confidence could take more than emergency interest rate hikes.

The pound, the most visible gauge of investors’ perception of the UK, plunged to as low as $1.0327 on Monday, an 8 percent fall from the moment UK finance minister Kwasi Kwarteng unveiled a “mini budget” on Friday with 45 billion pounds ($48 billion) worth of unfunded tax cuts.

The prospect of more borrowing to pay for tax cuts weighted towards the wealthy and a “new era” of econo…

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