The British pound tumbled to a one-year low against the euro and a seven-month low against the yen on Wednesday, stirred by a U.S. asset selloff that unnerved investors and pushed them toward safer currencies.
U.S. tariffs impacting global economies led to declines in stocks, the dollar, and U.S. Treasuries, signaling pervasive economic instability. Prime Minister Keir Starmer stated that Britain aims to form an economic partnership with the United States to alleviate trade barriers with other key partners.
The pound’s trajectory was influenced by global investor sentiment, as noted by George Vessey, a strategist at Convera. Anticipating further Bank of England rate cuts amidst expected economic slowdowns, markets priced in significant rate changes, which will likely impact economic perceptions and market stability.
(With inputs from agencies.)
