Pound Takes a Hit Amid Upcoming Economic Policy Announcements

The pound depreciated against a strong dollar on Thursday, with markets keenly awaiting impending U.S. core consumer inflation data, a European Central Bank policy meeting, and upcoming Federal Reserve and Bank of England gatherings.

As of 1000 GMT, sterling was down 0.2% at $1.3505 and had narrowly declined against the euro. This came after a significant sell-off in long-dated UK government bonds in early September pushed yields to their highest levels since the late 1990s, amid concerns about UK public finances.

Finance Minister Rachel Reeves is under pressure to address the deficit ahead of her November budget. She has pledged to consider business property tax reforms to stimulate growth. Meanwhile, the Bank of England is set to convene next week, with expectations of maintaining the current 4% rate.

(With inputs from agencies.)