The pound is rapidly losing value. Overview for 28.09.2023

The British pound sterling, paired with the US dollar, continues to decline. The current GBPUSD exchange rate stands at 1.2140.

Today's pound levels represent new six-month lows.

Investors believe that the Bank of England has concluded its aggressive cycle of monetary policy and is not expected to raise interest rates in the near future. This is due to worsening economic conditions and reduced inflationary pressures.

Over the course of September, the pound has depreciated by 4%, representing its poorest performance since August of the previous year.

Last week, the BoE maintained the interest rate unchanged at 5.25% per annum. This was a departure from the monetary tightening measures initiated in December 2021.

Furthermore, the strength of the US dollar is significantly weighing down on the GBP.