Sterling experienced its largest three-day decline in nearly two years, dropping 2% as investors shifted focus from UK government debt to the US dollar.
The recent swift decline in sterling is partly attributed to growing anticipation that the Federal Reserve will be less aggressive with interest rate cuts, strengthening the dollar.
Despite the pound's slide, UK equities have not entirely surrendered, with the FTSE 100 gaining, although domestically oriented indices like the FTSE 250 suffered losses.
With UK bond yields hitting levels not seen since the late '90s, it suggests investors are bracing for prolonged inflation and rising interest rates, amplifying market volatility.
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