The British pound traded above $1.36 in the final full week of August, close to its strongest level since mid-February, as the US dollar came under pressure after the US Treasury unexpectedly planned to at least double its purchases of longer-dated government bonds. Investors were also awaiting details on Iran sanctions and comments from Fed Chair Kevin Warsh at Jackson Hole on Friday for clues about the interest-rate outlook. UK money markets continued to price in one Bank of England rate hike by year-end, with another quarter-point increase fully anticipated by early 2027. July inflation accelerated to 2.9%, the highest since March, while core inflation (consumer-price growth excluding volatile components) exceeded expectations at 2.6%. Faster business-activity growth in PMI (purchasing managers' survey) readings and consumer confidence at a two-year high in August provided an early boost for new Prime Minister Andy Burnham, although the UK remains exposed to high inflation linked to the Iran conflict.