Sterling Slides Amid Political Turmoil and BOE Uncertainty

The pound faced pressure against both the dollar and euro as initial selloffs of the U.S. currency tapered off, casting light on British political uncertainties and the Bank of England's monetary policy stance.

Despite a narrow decision to hold interest rates steady last week, concerns linger over the central bank's future moves, given the potential for borrowing cost reductions tied to anticipated inflation declines.

Amid this backdrop, British Prime Minister Keir Starmer is embroiled in a leadership crisis, as another aide steps down and opposition brews within his Labour Party ahead of elections, fueling further economic uncertainty.