| Powered by readers, open to all. | | | |  International confidence in the UK has been badly hammered by the mini-budget and the Liz Truss government's tax-cutting policies, and the pound is paying the price.
Sterling plunged to a record low against the US dollar in Asia-Pacific trading, extending the losses suffered on Friday, and moving closer to parity.
Investors have been rocked by the bonanza of tax cuts announced in Kwasi Kwarteng's mini-budget – with the UK chancellor pledging over the weekend to pursue more tax cuts.
The pound plunged almost 5% at one point to about $1.0327, Reuters data shows, a record low since at least decimalisation in 1971, as belief in the UK's economic management and assets evaporated.
Even after stumbling back to $1.05 as City traders reach their desks this morning, the currency was down 7% in two sessions.
It could be a volatile day, with fears over a global downturn also hitting the markets.
The pound has now slumped by almost 10% so far this month, hit by anxiety over a looming recession, and the increase in borrowing needed to fund Kwarteng's £45bn giveaway.
Yesterday, Kwarteng told the BBC's Sunday with Laura Kuenssberg that Truss plans to radically reshape the UK economy with even more tax cuts and fewer regulations.
"There's more to come," Kwarteng said, declining to set a limit on how much public debt could be incurred in the process.
The shadow chancellor, Rachel Reeves, says she is incredibly worried about the fall in the pound overnight.
Reeves, who will address the Labour party conference today, also said that sterling's slide puts pressure on the Bank of England to raise interest rates.
Some City economists predict the Bank may need to make an emergency increase in interest rates to prop up sterling.
The FTSE 100 index of blue-chip companies listed in London has opened 0.33% higher, after recovering a little of Friday's 2% slide.
The weak pound will benefit major exporters, making their goods and services more competitive overseas. The consumer goods maker Reckitt Benckiser (+2.8%), the drinks group Diageo (+2%) and the pharmaceuticals firm GSK (+1.7%) are among the risers.
However, the domestically-focused FTSE 250 index (a better gauge of the UK economy) has dropped by 0.75%, to its lowest since November 2020.
Housebuilders are leading the fallers in London, on fears of higher interest rates that will hit the property market.
The agenda
• 9am BST: German Ifo business climate index
• 1.30pm BST: Chicago Fed national activity index on the US economy
• 2pm BST: the ECB president, Christine Lagarde, appears at the economic and monetary affairs committee of the European parliament in Brussels
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The Kwarteng plan puts at risk the very poorest people in the UK – and growth 
Truss's go-for-broke gamble means Labour inherits economic mess if it wins election 
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