The British pound slipped nearly 0.1% against the dollar to $1.3633 by 0956 GMT on Monday, ending a four-week rally after touching a more than six-month high of $1.3675 on Friday. Sterling was flat against the euro at 85.57 pence. The currency remains one of the best-performing Group of Seven peers this year, supported by expectations that the Bank of England will raise interest rates toward the end of the year as the economy shows better-than-expected resilience. LSEG data indicated traders expect benchmark rates to rise by at least 25 basis points by December, although most economists forecast no change. UBS Global Wealth Management economist Maelle Quillevere said resilient growth and easing domestic inflation pressures support leaving monetary policy unchanged this year, with rate cuts potentially resuming in 2027. The Resolution Foundation said productivity was showing signs of sustained improvement, while recent data pointed to strength among businesses and consumers. Prime Minister Andy Burnham urged European Council President Antonio Costa to pursue closer ties with the European Union ahead of a UK-EU summit this year. Britain’s first budget under the Burnham government in October will be important for investor confidence amid concerns about elevated sovereign debt and higher borrowing costs. Investors also considered the potential effects of U.S. sanctions on Iran and its trading partners, including the risk of retaliation from Tehran. U.S. Treasury Secretary Scott Bessent was expected to hold a press conference at 1700 GMT.