Sterling has recorded its steepest monthly decline against the dollar since the wake of the Brexit referendum against a backdrop of intensifying economic and political uncertainty.
The pound fell 4.5 per cent in August to $1.16 in the biggest monthly drop since October 2016. Sterling also declined by almost 3 per cent against the euro.
The currency’s tumble reflects the deteriorating outlook for Britain’s economy as the energy crisis deals a powerful blow to businesses and consumers. The new prime minister, set to be named next week, could bring further uncertainty as they set new fiscal priorities.
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