Sterling declined for the fifth consecutive day on Tuesday as rising US bond yields bolstered the Dollar.

However, the Pound remains 18% up from last year when former prime minister Liz Truss's borrowing plans saw the currency plummet.

Traders are confident the Bank of England (BoE) has almost definitely come to the end of its rate hiking campaign after the central bank last week kept monetary policy the same, with the economy decelerating and inflation edging lower, Reuters reports

The Pound has been steadily falling from a 15-month top in July as it becomes more evident from central banks' language and macroeconomic data that rates will more likely rise in the US than in the UK.

The greenback is on course for a 2.4% increase this month, fuelled by 10-year US Treasury yields reaching their highest since before the financial crisis, as the Federal Reserve indicated rates would remain higher for longer last week.

At the time of writing, Sterling was down 0.3% at $1.2174, near its lowest point since March.

The currency is on track for its largest monthly loss since last September when it plunged to a record low of $1.0327, following the Truss government's 'mini budget' that comprised as much as £45 billion in unfunded tax cuts, the Reuters report adds.

"Sterling, until very recently, has been propped up by expectations for more BoE hikes, and that is diminishing after the three hits that we took last week," said RBC Europe chief currency strategist Adam Cole.

Cooler inflation last month, weaker business activity than forecast earlier this month, and the Bank of England's decision to keep rates unchanged saw the Pound lose 1.1%.

"There is half a rate hike priced in going forward and, if that unwinds - which we think it probably will on balance - then there may be a little more Sterling underperformance to come on the back of that," Cole added.