Sterling hits record low against the dollar, as Asia-Pacific currencies also weaken

The British pound hit an all-time high.

Matt Cardy | Getty Images

The Pound sterling plunged to a record low on Monday morning in Asia, after the announcement last week by the new British government that it implement tax cuts and investment incentives to stimulate growth.

The pound briefly fell 4% to an all-time low of $1.0382 on Monday in Asia.

Critics say these economic measures will disproportionately benefit the wealthy and could see the UK take high levels of debt at a time of rising interest rates.

“[It] it doesn’t look like the UK government is throwing a bone at the market here in terms of having a much more tempered fiscal trajectory, and so I think at this point right now the path of least resistance is going to stay lower,” Mazen Issa, senior forex strategist at TD Securities, told CNBC before the pound hit a new low.

“Below $1.05, you’re really looking at parity,” he told CNBC’s “Squawk Box Asia.”

“We’ve seen the euro dip below parity – I don’t see why the pound couldn’t either,” he added.

In the Asia-Pacific region, the currencies of Japan, South Korea and China weakened against the greenback, while the Australian dollar was roughly stable.

the Japaneses yen traded at 143 levels against the dollar, weaker compared to the authorities’ intervention in the foreign exchange market last week.

The South Korean won was close to 2009 levels at 1,428.52 to the dollar.

The US dollar index gained against a basket of six major currencies.

This is breaking news. Please check for updates.

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