Tax-cut plan pulls British pound to 40-year low against US dollar

The pound dipped as low as $1.0349, the lowest ever, early on Monday [File: Dado Ruvic/Reuters]

The British pound has resumed a slide against the US dollar after Britain’s new government outlined plans to cut taxes and boost spending.

On Monday morning, the pound fell by as much as five percent against the dollar at one point touching $1.0327, its weakest at least since the introduction of decimalisation in the early 1970s.