Sterling fell as much as 4.8% to trade below $1.04 in the early hours of Monday morning, extending losses from late last week.
The Bank of England on Monday said it is monitoring financial market developments «very closely» after a dramatic morning of turmoil saw the British pound fall to an all-time low against the U.S. dollar.
Sterling fell as much as 4.8% to trade below $1.04 in the early hours of Monday morning, extending losses from late last week when Finance Minister Kwasi Kwarteng outlined the new U.K. government’s so-called «mini-budget.»
The U.K. currency pared some of its losses through the session but extended its fall versus the dollar immediately after the Bank of England’s statement.
Sterling was last seen trading 1.3% lower at $1.0713.
«The Bank is monitoring developments in financial markets very closely in light of the significant repricing of financial assets,» Bank of England Governor Andrew Bailey said in a statement.
