Morgan Stanley predicts UK pound to hit parity with dollar by year end

Analysts say government missteps have undermined the currency

The currency tumbled last week after the UK’s mini-budget. Picture: Getty

The pound has rallied more than 10 per cent from last week’s lows against the dollar but most strategists are sticking to bets that the UK currency will resume losses, with some predicting a new record low by year-end.

Entering its sixth straight day of gains, sterling is poised to post its longest rally since April 2021, bouncing off last week’s record low of $1.0350.

Bank of England interventions to shore up the country’s bond ...