In the foreign exchange market on the 26th of the week, the British currency pound plunged against the dollar, hitting the lowest price since the transition to the floating exchange rate system in 1972.
The pound selling accelerated due to concerns that the British government's announcement of economic policies centered on large-scale tax cuts would worsen its public finances.
On the 23rd of last week, the British government announced economic measures centered on large-scale tax cuts, such as lowering the highest income tax rate and freezing the increase in the corporate tax rate.
In response to this, the movement to sell the currency pound strengthened due to concerns about financial deterioration, and this trend continued in the foreign exchange market on the 26th of the week.
The pound temporarily hit a low of 1 pound = $1.03 against the dollar, the lowest since the transition to a floating exchange rate system in 1972.
The UK Treasury Department has announced the issuance of a huge amount of government bonds in response to Prime Minister Truss's measures to curb utility costs in the beginning of this month.
"There is a view that the value of 1 pound may fall below 1 dollar for the first time," said a market official.