The pound has experienced its longest decline in nearly a year, falling for the fourth consecutive week against both the US dollar and the euro, largely due to the Bank of England's recent interest rate cut and expectations of further cuts. Sterling closed at USD1.2756, down 0.4% this week, and has lost 1.8% over the past month. Market sentiment has been dampened by political uncertainties and economic concerns, including potential tax hikes and recent rioting in the UK. Despite this, the London stock market showed resilience, with the FTSE 100 index recovering most of its early-week losses. Global markets also rebounded after initial fears of a US recession and a surprise interest rate hike in Japan. Analysts caution that market volatility may persist due to ongoing economic uncertainties and mixed signals from the US Federal Reserve.