Banking Turmoil

A Rally in the British Pound May Be Winding Down

If persistent inflation prompts further aggressive interest-rate rises, the U.K. economy could be in for a hard landing

The British pound has rebounded after hitting a low in September. Photo: Dado Ruvic/Reuters

After a phenomenal run for the British pound, market watchers say the currency’s fortunes could be about to change.

Sterling crashed to a record low in late September, following then-Prime Minister Liz Truss’s controversial tax-cutting plans. Since then it has staged a stunning turnaround, rebounding from an intraday low of below $1.04 to a high of about $1.26, before easing slightly. 

What's News

Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Continue reading your article with
a WSJ subscription

Subscribe Now

Already a subscriber? Sign In

Sponsored Offers