Sterling drops against firmer dollar as markets price in a hawkish Fed
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The pound fell to $1.331 against the dollar on Wednesday as markets prepared for a potential US interest rate hike.
- ✓The dollar got stronger after recent inflation data.
- ✓Rory Glass, an FX dealer at Marex, said, "T shift now among central bankers to being slightly more hawkish."
Story at a Glance
- Category
- Indian Markets
- Reported By
- Reuters
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Nov 11 (Reuters) - The pound fell against the dollar on Wednesday, which strengthened across the board after US inflation data and hawkish comments from Federal Reserve officials a day earlier fuelled bets that the US central bank will hike interest rates next month.
Sterling eased 0.2% to $1.331, pinned near its lowest in two weeks and extending losses after a 0.7% drop in the last session.
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The dollar index was up for the second straight day after data showed US consumer prices increased by more than expected in October and marked a third consecutive month of upside surprises.
The US currency firmed against most others, as traders fully priced in a 25-basis-point interest rate hike in December, with slim chances of an outsized 50-bp hike also on the cards, according to the CME FedWatch Tool.
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Reuters
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