The pound fell to 1.3420 vs. the dollar in late October 2025 amid US shutdown fears and weak UK economic data.

The British pound weakened to around 1.3420 against the US dollar in late October 2025, pressured by a stronger dollar amid ongoing US government shutdown concerns, though no final decisions on federal layoffs have been made. The pound struggled to sustain gains above 1.3500, trading in a narrow range of 1.3360 to 1.3525, as weak UK economic data, including a services PMI drop to 50.8, weighed on sentiment. Analysts remain divided on future direction, with forecasts ranging from a decline to 1.33 by year-end to a potential rise to 1.40 by late 2026, depending on monetary policy, fiscal stability, and global market dynamics.