Traders' confidence in the pound has taken its biggest dive this week since the 2022 UK budget crisis, according to the options market, as a global bond selloff added to growing unease over Britain's finances and sent bond yields to 16-year highs.

The pound sterling has dropped to its lowest level in 14 months against the US dollar, reflecting mounting unease among investors about Britain’s fiscal trajectory. Simultaneously, UK borrowing costs are climbing sharply,

Investing.com - The British pound slumped to its lowest level in over a year Thursday, weighing by falling confidence in the country’s fiscal outlook amid soaring borrowing costs. At 08:10 ET (13:10 GMT),

Jan 10 - Sterling continued its slide on Friday, its fourth day of falls, as elevated global bond yields kept the currency under pressure. The pound was down 0.17% against the dollar at $1.2286 , hovering close to Thursday's 14-month low of $1.2239.