Sterling plummets as investors flee the fiscal plan

On Monday, the value of the pound fell to an all-time low as traders rushed for the exits out of fear that

the new government's economic plan would push the country's finances to the limit.  

The sharp drop in the British pound helped the U.S. dollar index reach a new 20-year high.

This index compares the U.S. dollar to six other currencies, such as sterling and the euro.

Europe's common currency also hit a new 20-year low against the dollar as fears of a recession grew.

The energy crisis is also getting worse as winter approaches, and the Ukraine war is getting worse.

A right-wing alliance was also expected to get a clear majority in Italy's parliament after the weekend elections.  

The dollar got stronger against the yen after the shock of the Japanese government's currency intervention last week.

Investors turned their attention back to the difference between the

Federal Reserve's hawkish attitude and the Bank of Japan's insistence on sticking to massive stimulus.  

Sterling fell to an all-time low of $1.0327 and was last worth 3.34% less at $1.0490.

Image Credit: all websites and social media