Pound slumps to two-year low against dollar as fears for UK economy deepen

Sterling has fallen 11% against the US currency this year

Sterling’s fall against the dollar has also been driven by a US currency pumped up by hiked interest rates (PA Archive)

The pound has fallen to a two-year low against the dollar as fears grow for the future of Britain’s economy amid surging prices and falling consumer confidence.

On Tuesday, sterling fell below $1.19 for the first time since March 2020, when the government announced the first Covid lockdown.

It came as Boris Johnson's government lurched further into chaos following the resignation of senior figures including Rishi Sunak, the chancellor. In a parting shot at the prime minister, Mr Sunak said part of his reason for quitting was that the government needed to be honest that the path to a better future was “not an easy one”.