Sterling Edges Down, Set for Best Week in Over 3 Months

2025-11-28 13:56 By Agna Gabriel 1 min. read

The British pound slipped to $1.322 on Friday but still gained about 1% for the week, its strongest rise since early August, after investors reacted to the government’s new budget.

Finance minister Rachel Reeves presented her long-awaited budget earlier in the week and defended it against criticism over higher spending and the decision to lift the tax burden to its highest level since World War Two.

The plan aims to raise £26 billion in new taxes to support welfare programs.

Investors generally welcomed the budget’s signal of more disciplined borrowing, though the muted market response showed much of it was already priced in, and part of sterling’s rise likely came from traders unwinding hedges set before the announcement.

Looking ahead, the pound may face limited upside as its yield advantage fades and more Bank of England rate cuts loom.

The central bank kept rates unchanged in November, and easing inflation has strengthened expectations of a cut next month.



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