One pound is now worth around $1.12 and as well as discouraging travel to dollar economies, the fall of sterling will affect the price of flights, with fuel and other aviation necessities being purchased in dollars.
The Guardian said investors were concerned about UK plans for unfunded tax cuts and spending pledges such as the energy price cap, which means the UK must borrow more.
The dollar is also stronger because the US has raised interest rates, which attract currency investors.
The Bank of England is also expected to raise interest rates when it makes its decision at midday today in an attempt to curb soaring inflation.
