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LONDON: Sterling skidded against the dollar on Thursday to its lowest level since March 2020 as storm clouds gathered over the British economy and investors seek safety in the U.S currency.

Adding to August losses that amounted to its worst month since late 2016, the pound briefly slid as low as $1.1499, a new low since March 2020 when COVID-19 hit markets.

The British currency was last hovering just above that level at $1.1534, down 0.7% on the day.

The pound lost 4.6% against the dollar last month in its worst performance since October 2016, and has fallen by nearly 15% this year, fuelled by concerns about slowing growth in the British economy as inflation soars into double digits Its closing price on Wednesday was its weakest monthly close since 1985, when it hit an all-time low of around $1.05.

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