British pound slides to an all-time low against the dollar. Here's the impact.

The pound is taking a pounding.

The British currency has plunged, sliding against the U.S. dollar to touch an all-time low. It's a sign of the alarm in financial markets over new Prime Minister Liz Truss' emergency budget measures unveiled last week aimed at jump-starting the ailing economy.

Investors are spooked by a sweeping package of tax cuts likely to cost tens of billions of pounds in extra government borrowing and amounts to a risky gamble to stave off a looming recession. Truss believes that tax cuts, especially for the wealthy, will encourage households to sock away more money, but that could result in lower consumer spending, which could hurt the U.K. economy, analysts noted.