The pound came under pressure on Thursday, amid concerns over the future of Sir Keir Starmer\u2019s leadership.<\/p>\n
The pound weakened 0.8 per cent against the dollar to $1.354, and shed 0.7 per cent against the euro. It extended earlier declines after the Bank of England held interest rates at 3.75 per cent in a tighter than expected decision that suggested further rate cuts are likely.<\/p>\n
UK borrowing costs had earlier risen to their highest level since November, with the 10-year yield hitting as high as 4.6 per cent. They later fell back to 4.56 per cent after the BoE decision.<\/p>\n
The moves came as investors worried about the risks to UK assets from the mounting leadership speculation surrounding Starmer.<\/p>\n
The UK prime minister is facing fierce criticism from Labour MPs after he admitted he sent Lord Peter Mandelson to Washington in February 2025 despite knowing that the peer had continued his friendship with Jeffrey Epstein after the disgraced financier had been jailed for child sex crimes.<\/p>\n
In an attempt to calm the row, Starmer issued an apology on Thursday, declaring in a speech in East Sussex: \u201cI am sorry for what was done to you, sorry so many people in power failed\u2009.\u2009.\u2009.\u2009sorry for believing Mandelson\u2019s lies and appointing him.\u201d<\/p>\n
Several Labour MPs and peers have broken cover to argue that the deepening row over Mandelson could spell the end of Starmer\u2019s premiership. <\/p>\n