THE Pound has fallen to its lowest level against the US Dollar in over three decades.
The pound fell 0.3% this morning to 1.1474, its lowest level since 1985.
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The drop is in part due to a rising US dollar which is causing sterling and also the Euro to plummet in value.
The Euro is also falling in value after Russia cut off supplies of gas to Europe by closing off the Nord Stream 1 pipeline.
The pound is dropping in the UK in part due to its poor economic situation, with millions of households contending with the cost of living crisis.
It comes as Liz Truss is expected to be announced as the new Conservative leader today.
Ms Truss is set to unveil a £100billion cost of living rescue package.
As part of the package, the potential new prime minister will look at freezing the wholesale cost of gas produced in Britain.
That, it is hoped, will force energy companies to sell it at a loss which will push bills down.
Polls are predicting Ms Truss will become the fourth Conservative leader in six years after lunchtime.
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Inflation reached 10.1% in July, up from 9.4% the previous month.
Investment bank Goldman Sachs has predicted that figure could hit 20% next year, if gas prices continue to rise.
It means millions of households across the UK are struggling to make ends meet, as food costs and energy bills are driven higher.
The energy price cap is set to see the average household bill reach over £3,500 from October 1.
What a weaker pound means for your finances
A fall in the pound against the dollar is bad news if you’re planning on travelling westward across the Atlantic.
A weaker sterling means your money will be worth less in the US.
Currently, £1 will get you $1.1474 which means if you exchanged £100 you would get roughly $114 back.
That’s compared to an exchange rate of £1 to $1.15 on September 2, just three days ago.
There are some tips you can employ if you’re wanting to get more value for money when travelling abroad.
TravelMoneyMax at moneysavingexpert.com can help you compare rates from different bureaux de change.
Overseas spending cards mean you can go away without having to worry about carrying bundles of cash as well.
Some banks let you use your cards abroad without charging you fees as well. Monzo is one that lets you do this.
