UK Borrowing Surpasses Forecasts as Pound Falters

The UK's public sector net borrowing reached £18.3 billion in August, exceeding official forecasts by £3.5 billion and marking the second-highest August on record.

The central government debt interest hit a record £8.8 billion for the month, with borrowing for the financial year to August reaching £77.3 billion, £8.1 billion above forecast.

The UK's fiscal woes have put additional pressure on the pound, which has been weighed down by the Federal Reserve's decision to raise its target range to 3.75%-4.00%, a move that flipped the rate gap in favor of the dollar for the first time in months.