Sterling hits record low against the dollar, as other Asia-Pacific currencies weaken - CNBC

Sterling hit a record low.

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The British pound plunged to a record low on Monday morning in Asia, following last week's announcement by the new U.K. government that it would implement tax cuts and investment incentives to boost growth.

The sterling briefly fell 4% to an all-time low of $1.0382 on Monday in Asia.

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Critics say those economic measures will disproportionately benefit the wealthy and could see the U.K. take on high levels of debt at a time of rising interest rates.

"[It] doesn't seem like the U.K. government is throwing the market a bone here in terms of having a much more tempered fiscal trajectory, and so I think at this point right now, the path of least resistance is going to remain lower," Mazen Issa, senior forex strategist at TD Securities, told CNBC before the pound hit a new low.

"Below $1.05, you really look at parity," he told CNBC's "Squawk Box Asia."

"We've seen the euro dip below parity — I don't see a reason why sterling can't either," he added.

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In the Asia-Pacific region, Japan, South Korea and China's currencies weakened against the greenback, while the Australian dollar was about flat.

The Japanese yen traded at 143-levels against the dollar, weaker compared to after authorities intervened in the currency market last week.

South Korea's won was near 2009 levels at 1,428.52 per dollar.

The U.S. dollar index gained against a basket of six major currencies.

— This is breaking news. Please check back for updates.

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Sterling hits record low against the dollar, as other Asia-Pacific currencies weaken - CNBC
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