This morning (September 5) the pound official hit its lowest point in decades ahead of the announcement of the next Prime Minster and weeks of weakening. 

Therefore, this meant that British holidaymakers in the US and importers of goods to the UK are getting little out of the pound for the first time in 37 years. 

The fall means that imports are likely to be a lot more expensive for Britain as most global trading is transacted under the dollar currency. 

It marks the first time in nearly 40 years the sterling has ever been so low after it fell in 1985 and saw countries come together to intentionally weaken the dollar against its international counterparts.

This saw the G5 countries, Germany, UK, US, France and Japan all work together to help devalue the dollar. 

The growth spurt in the US currency saw American businesses lose out as imports became cheaper for US customers to buy over their nation's own. 

Bournemouth Echo: Pound falls to 37 year low as market reacts to new Prime Minster Liz Truss (PA)Pound falls to 37 year low as market reacts to new Prime Minster Liz Truss (PA) (Image: PA)

But now this morning saw pressure on the pound grow as the nation waited to hear the announcement of the next Prime Minister. 

With the pound dropping to its lowest in 37 years, some think that Liz Truss's confirmed victory could see the sterling impacted in the long run. 

Senior analyst at Swissquote Bank, Ipek Ozkardeskaya said: “We could see some profit taking and a ‘sell-the-fact’ rally in sterling when Liz Truss’s victory is confirmed."

It comes as Truss hinted at changes to the Bank of England's mandate towards controlling inflation and having it focus more on growth.