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Pound heads for worst week in 18 months as Burnham lines up Labour bid

economy The Guardian By Graeme Wearden Fri, 15 May 2026 13:08:03 GMT 1 min read
Pound heads for worst week in 18 months as Burnham lines up Labour bid

UK government borrowing costs jump amid political uncertainty and oil price rise that fuelled inflation worries Business live – latest updates The pound was heading for its worst week in 18 months on Friday as City traders anticipated that the UK prime minister, Keir Starmer, could face a challenge from the Manchester mayor, Andy Burnham, later this year. After days of uncertainty over Starmer’s future, sterling dropped by almost three cents, or 2%, during the week to $1.336 on Friday, a five-

UK government borrowing costs jump amid political uncertainty and oil price rise that fuelled inflation worries

Business live – latest updates

The pound was heading for its worst week in 18 months on Friday as City traders anticipated that the UK prime minister, Keir Starmer, could face a challenge from the Manchester mayor, Andy Burnham, later this year.

After days of uncertainty over Starmer’s future, sterling dropped by almost three cents, or 2%, during the week to $1.336 on Friday, a five-week low. That would be the largest weekly drop against the US dollar since Donald Trump’s election win in early November 2024.

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