GBP Weakens Against USD Amid Soaring Fiscal Deficit

The British Pound (GBP) has weakened to near 1.3300 against the US dollar (USD), as the UK's fiscal deficit exceeded market expectations.

The Office for National Statistics reported that public sector borrowing hit £18.27 billion in August, surpassing the forecast of £15.35 billion a year prior and £2.04 billion in July.

This comes ahead of the first budget, where UK Chancellor John Healey will face pressure to raise taxes or cut spending due to soaring borrowing costs caused by the Iran war and weaker growth, which have wiped nearly £12 billion off the UK government's fiscal headroom.