The pound dipped to its lowest against the euro in five months, triggered by concerns about the UK economy following a decline in retail sales.
The euro soared to 87.4p, marking its pinnacle since May, in light of data from the Office for National Statistics that showed a 0.9% drop in retail sales for September.
Additionally, the pound weakened against the dollar, hinting at the possibility that the Bank of England might hold off on any further interest rate hikes given the economy’s frailty.
Neil Birrell, the Chief Investment Officer at Premier Miton, commented, “Given the challenges faced, it’s understandable to see the consumer sector feeling the strain.
“While this information might be perceived as positive by the Bank of England, it’s doubtful that it will play a significant role in their policy-making.”
Furthermore, the pound has been faltering against more stable currencies and currently stands at 1.0819 Swiss francs, the lowest since the previous September.
