Pound Sinks to Lowest Vs Dollar Since April Ahead of UK Budget

The pound is coming under pressure as investors brace for potential tax rises and spending cuts in the upcoming UK budget that may exacerbate the economic slowdown.

Sterling hit its weakest against the euro since 2023 on Wednesday and is on track for the longest monthly losing streak in nine years. It is also poised for the lowest daily close against the US dollar since April 11. Options pricing is the most bearish in three months and strategists at Nomura Holdings Inc, Wells Fargo & Co and Rabobank are predicting further losses.