Pound falls to 13-month low as investor confidence in UK wanes

The British pound has fallen to its lowest level in 13 months, driven by concerns over the Labour government's ability to manage the deficit amid rising borrowing costs. This marks the fourth consecutive day of losses for the currency. The FTSE 250 Index dropped 1.1%, reaching its lowest point since April, while the FTSE 100 rose 0.6% as larger companies benefited from the weaker pound. Investor confidence in the UK appears to be declining. Market volatility has led to comparisons with past financial turmoil, and the pound has been humorously dubbed the "Great British Peso." Despite rising gilt yields, the pound's decline suggests capital flight from UK assets.