The pound sterling recorded the worst month since late 2016 once morest the US dollar and the worst performance once morest the euro since mid-2021 on concerns regarding a sharp slowdown in the UK economy amid rising inflation, which prompted investors to rush to sell the British currency.
The sterling was down 0.28% at $1.1622, heading towards ending August at a loss of regarding 5%, which is more than its 4.3% loss recorded in April.
The sterling had fallen in the Monday session to its lowest level since March 2020, when the need for Covid-19 hit the markets.
The British currency fell 0.64% once morest the European currency to 86.46 pence per euro, heading towards ending the month at a loss of 3%, making it the worst monthly performance since April 2021.
The weakness once morest the EUR, which is plagued by fears of a shortage of gas supplies and sharp increases in energy prices, highlights the extent of widespread concern in the market regarding the performance of the British economy.
Inflation in the UK is at 10% and is set to continue rising, which is putting pressure on the wages of consumers who are already suffering from the high cost of living, and British government bonds are heading for the biggest monthly decline since 1994 amid a sharp sell-off.