Sterling falls to eight-week low as uncertain economic outlook weighs

Fell almost 0.5% on Tuesday

Sterling declined to its lowest level since early July on Tuesday as uncertainty around the UK economic outlook continued, while the US dollar rallied on fading geopolitical tensions between the US and North Korea.

According to Reuters, fears over how Brexit negotiations will affect the growth of the economy have been the main cause of sterling's decline while the Bank of England's decision not to raise interest rates and cut the UK's growth forecast have contributed to a nearly 4% fall in the pound since the beginning of August. In its quarterly Inflation Report, the BoE cut the 2017 growth forecast for the UK by 0.2 percentage points to 1.7%, while it also held interest rates at 0.25%. The pound fell almost 0.5% to $1.281 in trading yesterday, its lowest level since early July, while the UK cu...