Sterling Slips as Oil Rises and UK Deficit Widens
Sterling weakened to $1.336, near its lowest level since late July, as higher oil prices and weaker-than-expected UK public finances weighed on sentiment. At the same time, the US dollar remained supported by expectations of further interest-rate hikes from the Federal Reserve. Brent crude climbed towards $102 a barrel, on track to end a four-day losing streak, amid uncertainty over oil flows and potential Middle East diplomacy. President Donald Trump is due to address the UN General Assembly later today and could meet his Iranian counterpart on the sidelines. UK government data showed the budget deficit widened to £18.3 billion in August, above the £15.5 billion forecast, partly reflecting higher inflation-linked spending on pensions and benefits. Attention is now turning to next month’s Autumn Budget, with the government reportedly considering excluding infrastructure borrowing from its fiscal rules.
336, near its lowest level since late July, as higher oil prices and weaker-than-expected UK public finances weighed on sentiment. At the same time, the US dollar remained supported by expectations of further interest-rate hikes from the Federal Reserve. Brent crude climbed towards $102 a barrel, on track to end a four-day losing streak, amid uncertainty over oil flows and potential Middle East diplomacy. President Donald Trump is due to address the UN General Assembly later today and could meet his Iranian counterpart on the sidelines.
5 billion forecast, partly reflecting higher inflation-linked spending on pensions and benefits. Attention is now turning to next month’s Autumn Budget, with the government reportedly considering excluding infrastructure borrowing from its fiscal rules.