Pound Slides Toward Seven-Month Low Amid Political Uncertainty
Sterling has weakened to around $1.32 against the dollar in late June, near its lowest level since November, as investors digest the Prime Minister's resignation and weaker economic data.
The British pound has weakened toward $1.32 in late June 2026, approaching its lowest level in seven months, as currency markets react to political upheaval and signs of economic softening.
The exchange rate of sterling to US dollars has fluctuated between a high of 1.32625 on 22 June and a low of 1.31475 on 24 June, with the pound hitting its lowest level against the dollar on 25 June at 1.3168.
Political and economic headwinds
The pound weakened below $1.32, nearing its lowest level in seven months, as investors balanced easing political uncertainty — following signs that a prolonged Labour leadership contest was becoming less likely after Keir Starmer announced his resignation — with weaker UK economic data.
June flash PMI data showed a weaker picture, with the composite index falling to a 14-month low of 49.4, below expectations and signalling a second consecutive month of contraction, while rising input costs and accelerating services inflation continue to complicate the Bank of England's policy outlook.
Against the euro, however, sterling has performed better. June has been a month of two very different sterling stories: against the euro, the likelihood of a smooth takeover from Keir Starmer to Andy Burnham has sent the pound to its best for almost a year.
What this means for you
If you're paid in pounds but send money abroad — to family, to pay foreign tuition fees, or to service loans in another currency — the weaker pound means you get less for each pound exchanged. A transfer of £1,000 to dollars that would have given you $1,380 in January now yields around $1,317, a loss of roughly $60. If you're paid in dollars or euros and converting into pounds, the opposite is true: your foreign income now buys more sterling. Students awaiting overseas transfers or expats remitting funds home should watch exchange rates closely and consider forward contracts or rate alerts to lock in better levels if the pound strengthens.
Sources
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