Pound still at lowest level since start of pandemic amid government chaos

The British pound is at its lowest level since the start of the Covid pandemic in March 2020 as the UK government faces a political crisis.

The pound has slid 0.6% today to $1.1883 as a wave of ministers resigned from Boris Johnson’s government. Sterling initially dropped more than a cent to below $1.20 for the first time since early 2020 three weeks ago, as concerns over the UK economy grew.

Over a dozen ministers including Finance Minister Rishi Sunak, Health Minister Sajid Javid, and City Minister John Glen have resigned since yesterday in protest against the Prime Minister. 

PM Johnson admitted to knowing about sexual assault allegations against former deputy chief whip Chris Pincher since 2019, prior to Pincher’s appointment. Johnson had told ministers he was unaware of them.

Pincher resigned last week and was suspended from the Conservative Party.

The PM said he will “keep going” as is “the job of a prime minister in difficult circumstances as the number of ministers tendering resigning grows.

The pound has also suffered from recession fears as soaring inflation has plunged the UK into a cost of living crisis.