LONDON—Sterling and the euro fell on Thursday as Prime Minister Liz Truss defended her government tax-cutting budget, while relief at the Bank of England’s intervention in bond markets faded.
Investors also awaited German inflation data.
The British currency jumped the most since mid-June on Wednesday after the BoE announced an emergency bond-buying plan to shore up a gilt market that had been in freefall with the pound. But data showed UK bond liquidity improved only slightly after the BoE intervention.
In the face of nagging doubts about Britain’s economic management and the outlook for global growth, sterling was 0.19 percent lower at $1.0866 at 1125 GMT, after falling to $1.0764 earlier….