AFP, Tokyo :
The pound dropped below $1.30 in Asia on Tuesday as the Bank of England’s post-Brexit interest rate cut and surprise stimulus weighed on the unit.
Sterling fell for its fifth day after the central bank last week voted to reduce rates to a record low 0.25 percent, cutting borrowing costs for the first time in more than seven years.
The central bank also announced o170-billion ($221-billion, 199-billion-euro) stimulus package, which it added could be expanded further.
The aggressive moves come in response to fears that Britain’s vote in June to quit the European Union would hammer the economy.
The pound tumbled to 30-year lows in the aftermath of the shock referendum result.
In Tokyo on Tuesday, the unit bought $1.2998 after earlier touching $1.2978, its lowest since mid July. It was at $1.3040 in New York on Wednesday.
“We could see some short-term weakness in the pound,” Janu Chan, a senior economist in Sydney at St. George Bank, told Bloomberg News.
