Sterling hits one-month high against the dollar as UK interest rate hike expectations rise | latest news

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The British pound hit a one-month high against the dollar on Tuesday as expectations grew that the Bank of England would raise interest rates, while the greenback fell after the rapid increase in US Treasury yields in the past few days stabilized.

On Sunday, Bank of England Governor Andrew Bailey sent the clearest message yet to an upcoming interest rate hike by saying the bank would “have to act” to deal with Britain’s rising energy costs that threaten to jump in consumer prices.

A rate increase in November would make the Bank of England the first major central bank to raise interest rates since the start of the Corona pandemic early last year.

Bailey’s comments had an immediate impact on bond yields on Monday, with two-year UK government bond yields posting the biggest one-day increase since August 2015.

Sterling rose 0.6% to $1.3810, its highest level since September 17.





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