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Sterling holds near 30-month lows as Johnson's majority shrinks

Sterling held close to 30-month lows against the dollar on Friday as a shrinking of Britain’s ruling Conservative Party’s majority in parliament added to worries over domestic politics three months before Britain is due to exit the European Union.
Britain’s pro-European Union Liberal Democrats won a parliamentary seat from the governing Conservatives, a blow to Prime Minister Boris Johnson in his first electoral test since taking office.
The loss reduces Johnson’s working majority in parliament to just one, ahead of an expected showdown with lawmakers over his plan to take Britain out of the European Union on Oct. 31 with or without an exit agreement.
“For those that think that general election risk, in one form or another, is there for the pound in the autumn, then this marginally adds to that key story,” said Simon Derrick, head of currency research at Bank of New York Mellon.
“I don’t think it’s a particular surprise that the pound is under pressure again today.”
In late afternoon trade in London, sterling was flat at $1.2128, not far from a 30-month low of $1.2080 hit on Thursday.
It was 0.2% lower against a broadly stronger euro at 91.61 pence.
For most of Friday, sterling flitted between positive and negative territory, lacking any clear direction.
“August trade is beginning to assert itself in terms of declining volumes and slightly lower volatility,” said Fiona Cincotta, senior market analyst at City Index.
Sterling has been pressured in recent days by a stronger dollar, renewed worries about a no-deal Brexit and reduced Bank of England forecasts for British economic growth.
Dour economic data continued to stream in, with activity in Britain’s construction industry shrinking for a third month in a row in July as Brexit worries hit building projects, amid concerns that the slowdown could soon spill over into other areas of the economy, according to a survey.
Sterling shed more than 4% of its value in July, its worst month since October 2016, following Johnson’s vow to leave the European Union on Oct. 31 whether or not a transition deal can be agreed with Brussels.
Bank of England Governor Mark Carney said on Friday that some major industries could become unviable if Britain leaves the European Union without striking a deal with the bloc, adding that this was now a real prospect.
The possibility of a no-deal Brexit has driven significant underperformance in UK equities and real estate, and saddled British companies looking to borrow overseas with a ‘Brexit premium’.
Nevertheless, some investment managers with long horizons are taking a second look and concluding that — at least on paper — some British assets look too cheap to ignore.
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BENEFIT Sponsors BuildHer...
- April 23, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”
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