Pound Set for Worst Month Since July After Starmer Quits

Sterling was on track for its worst monthly performance against the dollar since July, after the resignation of Labour Prime Minister Keir Starmer and a week that marked the tenth anniversary of the Brexit vote.

The pound fell against the dollar on Thursday for a fifth consecutive session. The dollar has strengthened in June. The Federal Reserve signaled it would hold rates higher. Political upheaval in London added to the pressure on sterling. See the GBP/USD profile for more.

Starmer's resignation, announced Wednesday, leaves the Labour Party without a leader. The country is still recalibrating its post-Brexit trade relationships. The tenth anniversary of the referendum served as a reminder of the economic drag from the UK's decision to leave the EU, a factor that has weighed on sterling for years.

The dollar gained against a basket of peers in June, supported by the Fed's hawkish stance and a risk-off tone in equity markets. The pound has been among the worst-performing major currencies this month.

The Labour Party will hold a leadership election to replace Starmer. Sterling's monthly loss is its largest since July.