Pound hits two and a half-year high after Bank of England holds interest rate
Sterling rose by almost a cent to $1.331 on the back of the news, its highest level since March 2022, before retreating slightly.
Sterling rose by almost a cent to $1.331 on the back of the news, its highest level since March 2022, before retreating slightly.
Overseas stocks rallied and currencies strengthened against the dollar after the Federal Reserve kicked off its rate-cutting campaign with a large reduction. Fed policy has big implications for overseas economies.
The pound was at its highest level in two-and-a-half years after the Bank of England left its key interest rate unchanged, taking a more cautious approach than the Federal Reserve. Sterling had already gotten a boost earlier in the session, following the Fed's rate cut on Wednesday.
The Bank of England kept interest rates at 5% in its September meeting, in a widely-anticipated decision.
- The U.S. dollar edged higher Thursday, bouncing off its over one-year low after the Federal Reserve announced an outsized interest rate cut, while sterling gained...
The Bank of England is expected to keep rates steady amid inflation fears.
-- Most Asian currencies moved in a flat-to-low range on Thursday as the dollar firmed sharply after an outsized interest rate cut by the Federal Reserve was offset by...
While markets are on edge on a historic Federal Reserve decision day, another central bank could also have a massive impact on stocks this week. Investors will be hoping it doesn't raise interest rates again, after a surprise hike in July unwound the so-called carry trade and sparked a bout of market turbulence. The Japanese yen climbed as much as 0.8% against the dollar on Wednesday, reflecting investors' belief that the Fed and BoJ are at different stages of their monetary policy cycles.
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