Pound falls below $1.09 for first time since 1985 following mini-budget

Sell-off as investors take fright at prospect of surge in government borrowing to cover huge tax cuts

The pound fell below $1.09 on Friday for the first time since 1985 as investors took fright at the prospect of a surge in government borrowing to pay for the sweeping tax cuts in Kwasi Kwarteng's mini-budget.

Issuing a punishing verdict on the chancellor's dash for growth", traders sent sterling tumbling on Friday in a broad-based sell-off in response to the huge rise in public borrowing required to finance his plans.