Sterling's Tumble: Economic Turmoil and the Dollar's Rise
The pound is on track for its largest monthly loss against the dollar since September 2022, as confidence in the U.S. economy grows while doubts over the UK economy intensify. Sterling drops against both the dollar and euro amidst unfavorable economic forecasts for the UK and interest rate disparities.
The pound is experiencing its largest monthly decline against the dollar since September 2022, reflecting increased optimism in the U.S. economy against a backdrop of skepticism regarding the UK's economic prospects.
Sterling decreased by 0.15% to $1.322, also weakening against the euro, which gained 0.4% to 86.46 pence. July marks a 3.7% drop in the pound, a slide reminiscent of the 3.9% decline during former Prime Minister Liz Truss's budget crisis.
Though the pound remains up by nearly 6% against the dollar this year, its gains have narrowed from a double-digit lead recorded earlier. With the Bank of England expected to cut rates further, compared to fewer anticipated cuts by the Federal Reserve, investors are shifting away from the pound.
(With inputs from agencies.)
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