Sterling sinks after finance minister's sacking

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Sterling fell against a strengthening dollar today after the British government cancelled only part of its fiscal programme, disappointing investors who had expected a bigger U-turn.

The pound was last at $1.116, down 1.5% on the day after Prime Minister Liz Truss said Britain's corporation tax will rise to 25%, reversing an earlier plan to freeze it at 19%.

"I don't see how that press conference will have done much to shore up the appeal of UK PLC to foreign investors," he said. Reports of a possible U-turn yesterday had caused the pound to rise 2% on that day, when the dollar also turned lower before rebounding today.

 

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