Pound's Plunge: Fiscal Fears Fuel Sixth Day of Decline
The British pound continues its downward spiral, marking a sixth consecutive decline against the dollar amid fiscal sustainability concerns. Pressure from heavy government bond supply and inflation fears have driven bond yields higher, impacting asset prices and fueling investor anxiety over future economic policies.

The British pound is experiencing its sixth day of depreciation against the dollar, reaching a new 2-1/2-month low against the euro amid ongoing concerns regarding Britain's fiscal health.
Heavy government bond issuance is putting pressure on British asset prices, while inflation concerns push bond yields higher in the UK and US. Investor focus remains on the upcoming U.S. inflation readings, with key producer and consumer price indexes set for release this week.
Market dynamics have seen the dollar near a two-year high as traders recalibrate expectations for future U.S. rate cuts following strong economic data. Meanwhile, the British currency dipped by 0.2% to $1.2175, after reaching its lowest level since November 2023.
(With inputs from agencies.)
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