The British pound tumbled to its lowest level against the U.S. dollar on Monday.
The Associated Press reported that it fell to $1.0373 as trading opened in Asia and Australia before bouncing back to $1.07 in early London trading.
The British pound fell steeply by more than 4% on Monday to a new record all-time low against the US dollar of $1.035.
Since Friday, it has taken a nose dive of more than 5% against the dollar, CNN reported.
According to the news outlets, the slump comes after British Chancellor of the Exchequer Kwasi Kwarteng announced the country's most significant tax cuts in 50 years.
The tax cuts include the government planning to cap electricity and natural gas prices for homes and businesses, the Associated Press reported.
The new tax-slashing measures were criticized as “trickle-down economics” by the Labour party, the Associated Press reported.
The news outlets reported that the previous record low for the British pound against the U.S. dollar was 37 years ago on February 25, 1985, when one pound was worth $1.054.