Jan 10 Reuters Sterling continued its slide on Friday, its fourth day of falls, as elevated global bond yields kept the currency under pressure.

The pound was down 0.17 against the dollar at 1.2286 , hovering close to Thursday39;s 14month low of 1.2239.

Global borrowing costs have soared amid concerns about rising inflation, reduced chances of a drop in interest rates, and uncertainty over how U.S. Presidentelect Donald Trump will conduct foreign or economic policy.

This has propped up the dollar while sending ripples through other currencies and stocks.

Among the worst hit has been the UK market, with sterling having lost 1.9 since Tuesday.

The yield on British government bonds, or gilts, soared this week, driving the government39;s borrowing costs to their highest in over 16 years.

This is putting pressure on finance minister Rachel Reeves, potentially forcing her to cut future spending.

Benchmark 10year gilt yields edged up in early trading on Friday to around 4.84, but remained below Thursday39;s high of 4.925, their highest since 2008.

But sterling continued to slide, as investor concern mounted about the country39;s finances.

There remains clear concern over the likelihood that all of the Chancellor39;s fiscal headroom has now been eaten up by the selloff in gilts, and the anaemic nature of UK economic growth, said Michael Brown, strategist at Pepperstone.

Traders are paying more to hedge against big swings in the pound than at any time since the March…