From Yahoo Finance: 2025-03-25 12:40:00

Chancellor Rachel Reeves is set to reveal £15bn in public spending cuts this Wednesday, causing money managers to dump the pound. Institutional investors have been selling sterling in anticipation of growth downgrades and weak forecasts from the Office for Budget Responsibility. Credit ratings agency S&P Global has already cut its UK growth forecast from 1.5% to 0.8%, citing high prices and weak growth due to various economic shocks. The weak growth has put pressure on the Chancellor to make significant spending cuts to rebalance the budget after a surge in government borrowing costs earlier this year. Despite heavy selling, the pound has seen a 6% increase against the dollar driven by US currency weakness, while slipping 1% against the euro. Other buyers and sellers of sterling include retail investors, banks, and businesses involved in cross-border trade.



Read more at Yahoo Finance: City dumps the pound ahead of Reeves’s Spring Statement