LONDON, Sept 25 Reuters The pound dipped to its lowest in six months against the dollar and its weakest in four months against the euro on Monday, as jitters across asset classes hurt the currency already bruised by markets39; reevaluation of the Bank of England39;s rate outlook.

The BOE kept rates on hold last week the first meeting at which it had done so since December 2021 on the back of signs economic growth is slowing.

Market pricing prior to that meeting had reflected expectations that a further 25 basis point rate hike was all but certain for 2023, if not at that specific meeting, but, on Monday, expectations for a further rate hike this year were roughly 40.

That underscored a reversal of the trend earlier this year when the pound had been boosted by expectations that the Bank of England would keep raising rates longer than the European Central Bank and the Federal Reserve.

Sterling, on Monday, dropped as much as 0.25 to 1.2213 its lowest since March 2023, though later steadied to trade flat on the day at 1.2242.

It is on track for a monthly loss of 3.4, its most since September last year when it was battered by a strong dollar and then Prime Minister Liz Truss39;s economic policies.

The euro on Monday briefly touched 87.03 pence, its highest since May, and was last flat a touch below that level.

What were seeing today is the Chinese real estate worries bleeding into the European session, weighing on equity markets and then on the euro and sterling,…