The pound sunk to its lowest level against the US dollar in over three decades this morning - just hours before the new Prime Minister is announced.
Sterling tumbled 0.3% to 1.1444 earlier today, according to Investing - its lowest level since 1985, or 37 years.
The pound has been sliding off the back of rising energy bills, along with soaring inflation rates which have just topped 10.1%.
Political uncertainty is also causing sterling to drop against other major currencies.
The fall this morning comes just hours before Liz Truss is expected to be formally announced as the new Prime Minister of the United Kingdom.
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Experts has last week predicted that the pound would plummet off the back of a new leader being appointed.
Sterling is normally particularly volatile to changes in poltics.
Nigel Green of deVere Group said: “This is alarming – and we expect it to get worse for the pound when the UK’s new Prime Minister is announced.
“Should the front runner, Liz Truss, win, as is expected, it can be reasonably assumed sterling will plummet further.
“It is already one of this year's worst performing major currencies.”
By shortly after 10am, the exchange rate had come up slightly to 1.1498 but was still down 0.08%.
Meanwhile, the US dollar is currently hitting record highs against its rivals - which is causing sterling and the euro to plummet in value.
The United States is being less effected by the energy crisis, as the war in Ukraine presents a less immediate risk.
Goldman Sachs has predicted that UK inflation could hit 22% next year, in another cost of living blow for households.
The investment bank also warned that Ofgem might be forced to increase its energy cap by a further 80% in January.
Ofgem has announced that its price cap will rise to £3,549 for those on default tariffs paying by direct debit - up from the current figure of £1,971 and an 80% increase.
For those paying by prepayment meter - typically vulnerable households or those struggling to pay for their energy - there is a bigger jump from £2,017 to £3,608.
Standard credit customers - so where you pay once you've received your bill - will see their price cap rise from £2,100 to £3,764.
Approximately 24 million households are covered by the energy price cap, including four million on prepayment meters.
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