The British pound fell below $1.34 on Tuesday, its weakest level since early August, amid a sharp rise in long-dated UK government bond yields due to concerns over the country’s fiscal outlook. The yield on the 30-year gilt climbed to its highest since 1998, intensifying pressure on Chancellor Rachel Reeves ahead of the Autumn Budget and further squeezing already limited fiscal space. Reeves is widely expected to announce tax increases to rein in the deficit. Political attention also turned to Westminster, where Prime Minister Keir Starmer unveiled a cabinet reshuffle on Monday. Meanwhile, investors are focused on the Treasury Committee’s questioning of Bank of England policymakers for signals on the path of interest rates and any potential adjustments to the central bank’s quantitative tightening program.