•New five pound polymer banknote featuring a portrait of Britain’s King Charles III
The British pound Sterling is currently trading toward its lowest point of the year as political instability in the United Kingdom has turned the sterling into a tailspin.
Numerous media outlets reported a resignation timetable for UK Prime Minister Sir Keir Starmer to avert an unceremonious ousting following a startling landslide victory for Labour and intra-party rival Andy Burnham in a recent by-election in Greater Manchester.
High expectations that Keir Starmer will resign as UK prime minister caused the pound to trade close to this year’s lowest point, reports AFP.
According to the latest data from the Central Bank of Nigeria, the Nigerian currency settled at N1,806 per pound sterling.
Early today, sterling fell as much as 0.4 per cent to $1.3181, close to its 2026 low of $1.3159 set in March.
The currency would be at its lowest level since November if it broke below the March low.
According to reports, Starmer is projected to give up power in a statement, though they cautioned that this was not guaranteed.
Andy Burnham, the mayor of Greater Manchester, was elected to Parliament last week. Over the past three days, the prime minister has been debating whether to continue opposing Burnham’s attempts to remove him from office.
The most important question for currency traders is how Burnham’s appointment as prime minister will affect the nation’s finances.
Given that the UK is already having trouble with its debt levels, markets are anxious about any potential rise in bond sales to finance spending.
There is probably more downside ahead for sterling as political risks in the UK increase, and foreign exchange traders search for currencies to hedge against a strengthening US dollar.
