Sept 26 (Reuters) - Sterling tumbled to a record trough on Monday as traders scampered for the exits on speculation the new government's economic plan will stretch Britain's finances to the limit.

source:DREAMS TIME

The British pound's searing drop helped the safe-haven U.S. dollar to a new two-decade peak against a basket of major peers.

source:DREAMS TIME

Sterling slumped as much as 4.9% to an all-time nadir of $1.0327, before stabilising around $1.05425, 2.9% below the previous session's close.

"Investors are searching out a response from the Bank of England. They're saying this is not sustainable."

The euro also touched a fresh 20-year trough to the dollar on simmering recession fears, as the energy crisis extends toward winter amid an escalation in the Ukraine war.

A weekend election in Italy was also set to propel a right-wing alliance to a clear majority in parliament.

The dollar added 0.54% to 144.175 yen , continuing its climb back toward Thursday's 24-year peak of 145.90. It tumbled to 140.31 that same day after Japan conducted yen-buying intervention for the first time since 1998.