Pound falls to lowest level since November against stronger dollar
10 reported
The pound has weakened to its lowest level against the US dollar since November 2025, reaching $1.3145, according to a single-source report from The Guardian. The decline is attributed to a stronger US dollar, which hit a 13-month high against a basket of major currencies, and a falling oil price that eases pressure on central bankers in the UK and eurozone to raise interest rates. The US Federal Reserve is expected to raise rates at least once this year after half its policymakers predicted a rate rise before the end of 2026. Political uncertainty following Keir Starmer’s decision to step down as prime minister on Monday has also weighed on the pound. Markets strategist Joel Kruger of LMAXGroup stated that the pound remains under pressure due to growing UK political uncertainty and a stronger US dollar backdrop. The euro also fell to its lowest level in over a year, dropping to $1.134, as the US-Iran peace deal eased inflation worries.
What’s reported
The pound weakened by half a cent against the dollar to $1.3145, its weakest since late November 2025.
The US dollar hit a 13-month high against a basket of major currencies and a one-year high against the euro.
Oil price fell 3% to $74.73 a barrel, approaching the pre-Iran war level of $72.48.
Ships have begun sailing through the Strait of Hormuz under a UN shipping agency plan to evacuate vessels trapped by the conflict.
Three stranded tankers carrying 5 million barrels of crude oil exited the Strait of Hormuz on Wednesday.
The euro dropped 0.4 cent to $1.134, the lowest since June 2, 2025.
The European Central Bank raised key interest rates two weeks ago, warning prolonged energy supply disruption could increase prices.
Eurozone inflation stood at 3.2%, above the ECB’s 2% target.
UK 10-year government bond yields fell 2 basis points to 4.73%; 30-year yields fell to 5.438%.
The Ifo Institute’s business confidence index for Germany improved to 85.6 in June from 84.9 in May.
Key figures
Keir Starmer, former UK prime minister (stepped down on Monday)
Joel Kruger, markets strategist at LMAXGroup
Analysts at Unicredit
Analysts at ING
Ifo Institute for Economic Research in Munich
Sources: The Guardian
