Pound extends day’s losses

LONDON: The pound dipped for a second consecutive day against a broadly stronger dollar on Tuesday and hit its lowest in more than six weeks against the euro, with most of the losses coming after the British government set out a plan to raise taxes.

Prime Minister Boris Johnson unveiled plans to raise taxes on workers, employers and some investors to try to fix the health and social care system, angering some in his governing party by breaking an election promise.

Johnson outlined what he described as a new health and social care levy, which will see the rate of National Insurance payroll taxes paid by workers and employers rise by 1.25 percentage points. The same increase will be applied to the tax on shareholder dividends.

Sterling, already trading lower on the day, dropped as much as 0.5% against the dollar to $1.3768. By 1452 GMT, it traded down 0.4% at $1.3782.

It fell to its lowest against the euro since July 21, down 0.2% at 86.14 pence, and last traded 0.1% lower at 85.94 pence.