Sterling hits one-month low as investors flee to safe-havens

The pound weakened against the dollar and the euro on Monday as investors shied away from risk-sensitive assets, as uncertainty grew around global trade policy and fears mounted of a recession triggered by U.S. President Donald Trump's tariffs.

Global financial markets were delivered a significant blow on Monday after Trump warned foreign governments they would have to pay "a lot of money" to lift the levies that he called "medicine".

Sterling fell to a new one-month low of $1.2825 and was last down 0.5% against the greenback. On Friday, it dropped roughly 1.5% - its biggest single-day drop since March 2023.