Sterling losses build as Budget speech nears

The pound is getting weaker throughout the morning as the Budget approaches.

Sterling had already hit its weakest level in seven weeks earlier today on concerns over political instability, signs of weakness in the economy and ongoing dollar strength.

Now, just over an hour before the chancellor, Philip Hammond, is due to give his Budget speech to Parliament, sterling has broken below $1.2250 to hit a fresh seven-week low of $1.2143 against the dollar.

That’s a fall of more than 0.4 per cent and gives the pound the dubious honour of being the worst-performing major currency against the dollar today.

Sterling still has a long way to fall before it tops the January 17th low of $1.2013, though. That day saw a huge rebound in the pound, which shot up to above $1.24 after the prime minister, Theresa May, promised to hold a parliamentary vote on Brexit.