28.10.202610:07:12UTC+00Pound Falls to Two-Week Low Ahead of UK Budget

The British pound slipped below $1.33 to its weakest level in two weeks as investors awaited UK Chancellor John Healey’s first budget, while the US dollar firmed ahead of the Federal Reserve’s policy decision. Healey has outlined plans to abolish standing charges on gas bills from 2027, aiming to ease the pressure of rising energy costs on households. He is also expected to reverse planned cuts to the annual cash ISA allowance, a policy originally introduced by Prime Minister Keir Starmer and Chancellor Rachel Reeves to encourage savers to channel more money into financial markets. Earlier this week, reports suggested the government was considering a roughly 4% increase in the national living wage, alongside measures to reduce electricity costs for businesses. The budget is also expected to allocate an additional £20.4 billion to the National Wealth Fund and the British Business Bank, financed through higher government borrowing.