In early Asia trade, sterling fell close to $1.03 before regaining some ground to stand at about $1.06 on Monday morning, UK time.
Chancellor Kwasi Kwarteng has promised more tax cuts on top of a £45bn package he announced on Friday amid expectations borrowing will surge.
The pound has also been under pressure
due to the strength of the dollar. The euro also touched a fresh 20-year-low
against the dollar in morning Asia trade amid investor concerns about the risk
of recession as winter approaches with no sign of an end to the energy crisis
or the war in Ukraine.