Sterling holds close to 2021 low versus dollar | Malay Mail

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LONDON, Nov 24 — The British pound was little changed today, within striking distance of its 11-month low against the dollar, as expectations for a rate hike supported the greenback. Meanwhile, investors remained focused on whether or not the Bank of England will raise interest rates at its...

LONDON, Nov 24 — The British pound was little changed today, within striking distance of its 11-month low against the dollar, as expectations for a rate hike supported the greenback.

At 0833 GMT, the pound was up 0.01 per cent versus the dollar. It hit its lowest level since December 22, 2020, yesterday at US$1.334 , as the renomination of Federal Reserve Chair Jerome Powell strengthened market expectations of US rate rises next year. But, a decisive move below 84 pence against the euro “may signal investors are starting to price in diverging contagion/growth paths for the UK and the eurozone, something similar to what we saw at the beginning of the vaccination programme in 1Q21,” they said in a research note.

Although the pound picked up support earlier this month from rate hike talk, investors are increasingly wary of the outlook for UK yields.

 

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