UK POUND STAYS PRESSURED AT THREE-MONTH LOW; GBPINR DOWN HALF A PERCENT

Published on Sep 07, 2023 14:25

UK pound continued to stay under pressure at a three-month low after a member of the Bank of England, Swati Dhingra, expressed concerns that interest rates had already reached a level that could potentially harm the economy if raised further. Meanwhile, Britain`s residential property market slump deepened, with figures from two of the top mortgage lenders indicating home prices falling at the fastest pace since 2009 and warnings of worse to come. Halifax said Thursday the average value of a home fell 1.9% in August, the sharpest monthly pace since November. It left prices 4.6% lower than a year ago when the value of UK property peaked. GBPUSD fell below another psychological $1.25 mark and was currently seen quoting at $1.2469, down 0.32% on the day. In the meantime, Birmingham the biggest British city after London reportedly showed dire financial straits. The city`s council is one of a growing number of local government authorities in the United Kingdom making, or considering, painful spending cuts as a result of insufficient funds. On the NSE, GBPINR was quoting at 103.90, down half a percent on the day.