“I’ve been in multiple graduate programs in London, and it’s always felt like it costs so much to pay your student loans as an American because the tuition would sometimes be twice the amount when you converted it to dollars,” said Yoo, a doctoral candidate in Egyptology at University College London. Justin Yoo, an American who has lived off and on in London since first arriving as a student in 1994 - when the pound was around $1.50 - said its drop in value made him feel “almost a little ripped off.” So I changed my booking to the Holiday Inn.” “I do not anticipate the pound going anywhere positive. “I booked a boutique hotel in Tribeca, which is something I can afford for a few days when the pound is doing better,” said Gonzalez, who works in finance. The situation is reversed for her British friend Beatriz Gonzalez, who will be touring New York and the West Coast in January and is already dreading the costs. Now, instead of one drink out at a restaurant, I can get two.” “But that was a few months ago when I was planning, and the pound was worth more. “I had budgeted $2,000 for a few days between the hotel, eating out and shopping,” said Ashleigh, 27, who traveled from Arizona with friends and strolled last week along Oxford Street, a major shopping destination lined with souvenir shops, department stores and global outlets like Uniqlo, the Disney Store and Adidas. He considers himself lucky: Many of his clients pay in dollars, and he owns an investment property in the San Francisco Bay Area that he rents out in dollars.įor Emily Ashleigh, an American visiting the British capital, the incredibly shrinking pound has also been a boon. “It’s a rare chance to actually be on the better side of the money equation as an American in London,” said Asher, 48, who grew up in the San Francisco Bay Area and today runs a luxury travel company. home, along with the 4 million who visit each year, the switch in currency fortunes has changed the calculus of life and travel abroad in a positive direction. The British government has dropped plans to cut income tax for top earners after defending the proposal for days.īut for many of the 166,000 Americans who call the U.K. World & Nation In striking U-turn, Britain scraps tax cut for wealthy that helped spark market turmoil Some economists say the country has already entered one new figures Wednesday showed that the British economy contracted by 0.3% in August. In the U.K., which is struggling with a cost-of-living crisis and staring at a dark winter of record fuel costs, the multiple blows have led to predictions of a recession. The greenback has also hit highs against the euro, the Japanese yen and the Chinese renminbi as investors seek a safe haven amid the global political and economic turmoil resulting from Russia’s war in Ukraine. Federal Reserve hike of interest rates to combat inflation - has only made things worse. That sent investors fleeing the pound in droves and the currency plummeting to its historic low before an extraordinary intervention by the Bank of England helped stabilize it.Ī strong dollar across the board - spurred by a U.S. Then came the pandemic - Britain is the only nation among the Group of 7 industrialized democracies whose economy has not recovered to pre-pandemic levels - and now there are the policies of the new British government.Īfter replacing Boris Johnson as leader last month, Conservative Prime Minister Liz Truss vowed to cut tens of billions of dollars in taxes - including for the richest earners - but failed to spell out how Britain would recoup the lost revenue. Business British pound plunges to new low against dollar as tax cuts spark concernīritain’s currency fell to its lowest value against the dollar amid concern over the economic policies of the government of Prime Minister Liz Truss.
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