Americans desperately making plans for UK vacations as pound nears parity with dollar

Americans desperately making plans for UK vacations as pound nears parity with dollar
How will the plunge of the pound affect the cost of living …

The value of the pound dropped more than 4 per cent, its lowest level against the US dollar in history.

Now, Americans are eager to plan holidays in the UK because it's much cheaper.

On Monday (26 September), the markets responded to the announcement of the country's most significant tax cuts in 50 years, indicating that Sterling's worth took a nosedive to $1.035 in early Asia trading.

This was all before it regained some ground to a 20-year low of $1.05 before recovering further to $1.075 after 10am.

Shadow Chancellor Rachel Reeves accused Chancellor of the Exchequer Kwasi Kwarteng of "fanning the flames" of the decreased pound by hinting at fresh "unfunded" tax cuts.

"The chancellor, instead of doubling down on his position on Friday, needs to now set out credible plans," Reeves told BBC Radio 4's Today programme.

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Despite the pandemonium this is causing in the UK, people in the US are just super-excited to visit and are sharing their hopes for their mega-cheap trip.

One person on Twitter wrote: "Time to go vacation in UK."

"A vacation to the UK is going to be a bargain soon," another added.

A third wrote: "A vacation to the UK sounds pretty good right now. Always wanted to see Arsenal play at the Emeritus."

Check out other reactions below.

On Sunday (25 September), Kwarteng said that there was "more to come" on tax cuts following his mini-Budget, which revealed a massive expansion in borrowing to pay for the £45bn tax cut spree.

He and Liz Truss have dismissed analysis indicating that the plan (which includes getting rid of the top income tax rate for high earners) will only see the incomes of the wealthiest households grow.

This morning, the pound bought less than a euro or dollar at one international bureaux de change.

The Independent reported that the Change Group office at London St Pancras International sold €100 for £108.84, bringing the pound to less than 92 euro cents.

The pound's poor performance has added to the list of concerns for investors amid a desolate market outlook and the risk of recession, as winter is around the corner and the war continues in Ukraine.

If the pound stays at a low level, the price of imports of commodities valued in dollars, such as oil and gas, is set to rise.

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