The Pound was weaker against a strong Dollar on Monday, near the 37-year trough hit last week, on a gloomy economic outlook.

On the whole, currency trade was subdued as London markets were closed due to Queen Elizabeth II’s funeral.

The Bank of England is holding a meeting on Thursday and the UK’s new finance minister Kwasi Kwarteng is due to deliver his first fiscal statement on Friday, where he’s expected to provide further details on tax cuts and an energy price cap.

The BoE is forecast to hike rates by a minimum of 50 basis points at this week’s meeting, and the likelihood of additional monetary tightening has failed to bolster the Pound. The U.S. Federal Reserve is also holding a meeting this week, and predictions of a 75-basis point increase has boosted the greenback, Reuters reports.

At the time of writing, Sterling was trading at $1.1381, a 0.5% decline on the day and nearing the 37-year low reached on Friday of $1.1351.

In addition, the Pound was slightly lower at 87.77 pence against the Euro, after reaching its lowest levels since early last year on Friday at 87.83 pence.

“The momentum is weak and the moves have been strong,” stated Nordea chief analyst, Jan von Gerich. “We should see a stabilisation at some point, but it's hard to say when that will come.”

So far this year Sterling is down around 16% against the Dollar, putting it on course for its worst year since 2016 when the Brexit referendum shook UK markets.

Although the Pound is not the only currency to have fallen against the Dollar this year, it has also been impacted by a subdued UK economic outlook.

The UK has the highest inflation rate among the world's big rich countries and is also at risk of tipping into a recession, the Reuters report adds.