Sterling weakened to $1.32, close to three-month lows, as a rebound in oil prices heightened inflation concerns and reinforced expectations for higher-for-longer interest rates, pushing gilt yields to multi-year highs and weighing on UK growth prospects. Brent crude rose back above $100 a barrel as Iran intensified attacks on shipping in the Strait of Hormuz, prompting markets to price more than 100 basis points of Bank of England tightening by the end of next year. BoE policymaker Catherine Mann said Tuesday that inflation above the Bank’s 2% target appeared embedded in the economy and warned it could reach 4% around the turn of the year, when wage negotiations typically take place. Meanwhile, the dollar remained supported by expectations that the Federal Reserve will raise rates for a second time this year in December. Against the euro, sterling rose to its highest level since June last year, as concerns over France’s deepening fiscal crisis weighed on the common currency.
The GBP/USD exchange rate fell to 1.3207 on October 8, 2026, down 0.05% from the previous session. Over the past month, the British Pound has weakened 2.51%, and is down by 0.69% over the last 12 months. Historically, the British Pound reached an all time high of 2.86 in December of 1957. British Pound - data, forecasts, historical chart - was last updated on October 8 of 2026.
The GBP/USD exchange rate fell to 1.3207 on October 8, 2026, down 0.05% from the previous session. Over the past month, the British Pound has weakened 2.51%, and is down by 0.69% over the last 12 months. The British Pound is expected to trade at 1.33 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.35 in 12 months time.