Sterling plunged to below $1.04 as global markets react to the UK’s biggest tax cuts in 50 years.
The pound has fallen to its lowest level against the US dollar since decimalisation in 1971.
In early Asia trade, sterling fell by more than 4% to $1.0327 before regaining some ground to around $1.05.
That came after UK Chancellor Kwasi Kwarteng unveiled historic tax cuts funded by huge increases in borrowing.
The pound has also been under pressure as the dollar has been boosted by the US central bank continuing to raise interest rates.