Currencies
UK’s Market Woes Shift to Pound With Currency at One-Year Low
- Gilt yields hover around multi-year highs on fiscal concerns
- Pound’s drop is a signal of capital flight, says M&G’s Sun-Wai
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As broad selling took hold in UK markets for a fourth day, focus turned to the pound after it fell to the lowest level in over a year.
Concern that the Labour government will struggle to keep the nation’s deficit in check amid higher borrowing costs pushed sterling down as much as 1% on Thursday to $1.2239. That’s the weakest level since November 2023.