The British pound is facing its toughest period against the dollar since July. It has hit a low not seen since April against the euro, signaling growing investor anxiety regarding the UK’s fiscal health.
Sterling, which has dropped 2.3% in October, is poised for its worst monthly fall since July and the second-largest this year, partly due to political pressures on British Finance Minister Rachel Reeves amid a rental dispute. Her upcoming budget presentation in late November is much anticipated.
UK government bonds have seen a surge this month as investors speculated on an interest rate cut by the Bank of England. The meeting next week is viewed as pivotal, with differing opinions on the probable economic outcomes.
(With inputs from agencies.)
