Pound, Euro suffer losses as US dollar gains momentum

(MENAFN) Both the British pound and the euro continue to weaken against a rising US dollar, with the pound sliding to levels not seen since late 2023.

Sterling dropped by 0.76 percent, reaching USD1.2111, as market instability and concerns about the UK’s economic prospects weighed on sentiment.

The euro experienced a sharp decline as well, falling nearly 0.6 percent to USD1.0185—its lowest value against the dollar since September 2022.

The dollar’s rally is fueled by a strong US jobs report and diminishing expectations of near-term interest rate reductions by the Federal Reserve.

The pound's weakness coincided with a turbulent period for UK government bonds, known as gilts.

A wave of gilt sell-offs pushed yields higher, reflecting heightened worries over the state of Britain’s public finances.

Last week, the yield on the UK’s 30-year bond surged to its highest point since 1998 amid widespread market instability.

While global government bond yields briefly eased on Friday, they resumed their upward trajectory this morning.

Yields in the US and Germany also rose, underscoring a continued shift in investor outlook and broader global economic uncertainties.

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