The dollar lost ground against the pound in late European trade on Tuesday after the US one-year inflation rate was lower than in the previous month, AFP reported.

The dollar fell 0.73% to $1.1137 a pound after four straight sessions of gains, but investors were cautious about the British market after the Bank of England intervened in the bond market for the third time.

The executive, led by Liz Truss, last week unveiled the biggest package of taxes and tax breaks offered in Britain in half a century to help Britons overcome the difficult economic situation.

Finance Minister Kwasi Kwarteng has confirmed Prime Minister Liz Truss’s aim to double the UK’s annual economic growth rate to 2.5% and for the first time gave a figure for the new Prime Minister’s spending plans.

“Our plan is to expand supply in the economy through tax cuts and reforms… In this way, we will turn the vicious cycle of stagnation into a positive cycle of growth,” Kwasi Kwarteng told parliament.

Among the measures announced on Friday is a reduction in the top income tax rate from 45% to 40%.

So from April 2023, 629,000 taxpayers who earn more than £150,000 a year will no longer pay the top rate of 45%, but the 40% tax rate that applies to those who earn more than £50,271 per year.