Pound Plummets Amid Wage Dip and Dollar Surge

The British pound fell to a three-month low due to slowed wage growth and rising unemployment, compounded by the dollar's strength post-Trump's election victory. Investors anticipate potential trade tariffs by the U.S., pressuring the pound, which has depreciated since the election alongside the euro.

The British pound tumbled to a three-month low as regular wage growth slowed and unemployment rose, according to Tuesday's data. These economic indicators, coupled with the U.S. dollar's surge following Donald Trump's election win, further contributed to the pound's decline.

In early European trading, sterling fell 0.5% to $1.2806, marking its weakest point since mid-August, before partially recovering to $1.2814. The pound also weakened against the euro, with the single currency gaining 0.2% to reach 82.97 pence.

The Bank of England might consider a gradual interest rate reduction as private sector regular pay moderates. Meanwhile, President-elect Trump's proposed tariffs could pose challenges for U.K.'s trade dynamics, despite the pound's relatively better performance compared to the euro since the U.S. election.

(With inputs from agencies.)