The Pound declined as much as 1% on Thursday after UK Prime Minister Liz Truss defended the government’s economic plans that have sparked chaos in the markets.

The PM said huge tax cuts was the right course of action to take for the country and refused to contemplate overturning the mini-budget presented at the end of last week.

At the time of writing, Sterling fell 0.88% to $1.0791 after dipping to a session low of $1.0764. The Euro edged up 0.17% against the Pound at 89.54 pence.

On Monday the Pound plummeted to an all-time low against the greenback of $1.0327, following Chancellor Kwasi Kwarteng unveiling the tax cut plans and a hike in borrowing, Reuters reports.

In addition, the mini-budget also caused chaos in the UK government bond market, leading the Bank of England to intervene on Wednesday.

Indeed, the central bank said it would purchase around £65 billion of long-dated government bonds after recognising "dysfunction" in the market.

The Pound jumped on Wednesday to end the session at $1.0877, as investors processed the Bank of England’s plans.

Nevertheless, it resumed its decline on Thursday as Liz Truss spoke out in defence of the government’s policies.

"We are facing difficult economic times," Truss said on BBC radio. "I don't deny this. This is a global problem. But what is absolutely right is the UK government has stepped in and acted at this difficult time."

According to Capital Economics senior markets economist, Jonas Goltermann, the strong Dollar and UK economy fears were hammering the Pound on Thursday.

"I don't think (the BoE's intervention) is going to be a long-term boost for Sterling, although it might prevent an extreme downturn," he stated.