The British pound is currently slipping against the US dollar amid ongoing concerns about borrowing costs, with the currency on track for its worst day in almost three months.
This morning, the UK’s 30-year gilt yield jumped to 5.672 per cent in early trading, over the previous 27-year high set in April, adding further pressure to Chancellor Rachel Reeves ahead of this year’s Autumn Budget
Sterling has dropped more than one per cent against the greenback with the currency being famously sensitive to movements in sentiment towards the bond market.
So far, the pound has lost nearly 1.5 per cent and fallen to around $1.34. If this trends continues, this would represent the largest one-day fall since mid-June.
The British pound has fallen against the dollar amid a recent spike in borrowing costs
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GETTY / TRADING VIEW
In response to gilt yields, the FTSE 100 opened at loss of 0.3 per cent. This is in line with movements in European markets, with Germany’s DAX and Italy’s MIB both slipping upon open.
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