Pound hits all-time low against dollar after mini-budget rocks markets

Odds of sterling hitting parity with dollar jump, as analysts say UK bond market getting smoked' by giveaway

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The pound has hit an all-time low against the dollar after the bonanza of tax cuts and spending measures in Kwasi Kwarteng's mini-budget threatened to undermine confidence in the UK.

The pound plunged nearly 5% at one point to $1.0327, its lowest since Britain went decimal in 1971, as belief in the UK's economic management and assets evaporated. Even after stumbling back to $1.05, the currency was down 7% in two sessions, after the UK chancellor pledged over the weekend to pursue more tax cuts.