Pound Under Pressure as UK Borrowing Hits Record High

The British pound has been under pressure due to a significant increase in UK borrowing. According to data released recently, public sector net borrowing jumped by £2.5 billion more than expected in August, reaching £13.7 billion. This unexpected surge pushed the UK's total debt to 100% of its gross domestic product (GDP) for the first time since 1961.

The pound has been slipping against the dollar, with GBP/USD down over 0.17% to 1.3343 after touching 1.3387 earlier. The greenback held firm despite reports that Tehran could reopen the Strait of Hormuz if the US meets certain conditions.

Analysts at VT Markets believe that weak UK economic data and shaky government finances will continue to weigh heavily on the pound in the coming weeks.