LONDON—The selloff in U.K. financial markets accelerated on investors’ worries that the country’s largest tax cuts in decades would spark higher inflation and put government finances at risk.
The British pound briefly sank to its lowest-ever level against the U.S. dollar Monday, before paring losses. The currency touched $1.0349 during Asian trading hours, breaking through its previous record low of 1985. It then recovered to just under $1.08, down slightly less than 1%.
