The pound sterling weakened against major world currencies on Wednesday, touching its lowest level against the American greenback since late April last year.
Yields on long-term government bonds in Britain reached their highest level in over two decades, raising concern about the economic outlook following Chancellor of the Exchequer Rachel Reeves' controversial budget plan. Recent data showed that activity in the British construction and manufacturing sectors slowed in December, further fueling the pound's depreciation.
The British pound dropped 1.18% against the dollar, selling at 1.23325. The euro climbed 0.65% against the pound sterling, changing hands for 0.83418 at 1:32 pm CET, trading at its highest level since late November. The UK currency dipped 0.87% compared to the Swiss franc, going for 1.12474.
