Pound Slides as Reeves Shows ‘Stark Reality’ Facing UK Finances

The pound fell to the lowest in seven months and UK government bonds briefly jumped as Chancellor Rachel Reeves discussed the country’s financial challenges, a glimpse into how markets might react on budget day later this month.

Sterling dropped as much as 0.8% to $1.3034 on Tuesday, the weakest since US trade tariffs rattled global markets in April. Thirty-year gilt yields also hit the lowest since then as Reeves cited the need to tackle high borrowing costs, before paring the move as a lack of specific policy details disappointed investors.