Pound Plunges as Dollar Rally Continues Despite Low Oil Prices

The British pound has been under pressure for three consecutive days due to the strength of the US dollar. The dollar's rally was fueled by investors pricing in a higher chance of several US interest rate rises over the coming months.

Despite oil prices remaining below $100 a barrel, the dollar is gaining ground against the pound, which slipped 0.45% to around $1.328 on September 22.

A survey by S&P Global showed that growth in British business activity cooled this month and inflation pressure built, an awkward backdrop for finance minister John Healey ahead of his first budget in October.