The British pound hit a new 37-year low against the dollar after Russian President Vladimir Putin's address in which he accused the West of nuclear blackmail and announced a partial mobilization.

The U.S. Federal Reserve's (Fed) expected interest rate hike later in the day influenced market sentiment as well as the Bank of England's interest rate decision and the government's new mini-budget this week, Reuters reported.

The pound fell 0.31 percent against the dollar to 1.13460 pence, having previously hit $1.13040, its lowest level since 1985.

The pound has lost 16% in value against the dollar this year due to rising fears of a global recession, heightened geopolitical tensions and soaring inflation.