The British pound has taken a tumble. What's the impact?

LONDON (AP) — The pound is taking a pounding.

The British currency has taken a plunge, 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.

But that's not all. The currency chaos is playing out against the wider backdrop of the dollar's rally to a two-decade high.