Pound slides below 1.34 as Burnham fiscal flexibility comments spook investors

The British pound dropped below the 1.34 handle against the US dollar, driven by remarks from UK official Burnham who expressed a desire for "flexibility" within fiscal rules. Market participants interpreted this as a potential shift towards looser policy, stoking concerns over inflation and fiscal discipline.

The comments triggered a sell-off in sterling, with the pair briefly trading under 1.34 before attempting to recover. Analysts suggest the move reflects growing uncertainty about the UK's fiscal trajectory, though no concrete policy changes have been announced.

No other details were provided in the original report.