Economic news

Pound slips, Bank of England rate hike is expected

Sterling eased versus the dollar and the euro on Thursday due to extended political uncertainty even as traders raised bets on a Bank of England interest rate increase in August.

Photo: Reuters

The British currency advanced to $1.3213 versus a broadly weaker dollar, its top since July 17, but reversed gains and slumped into the red territory. It lost 0.1 percent at $1.3180. It was virtually flat against the euro at 88.91 pence.

The pound has been affected by Brexit uncertainty in recent weeks as Prime Minister Theresa May tried to secure a favorable trade deal with the EU.

On the other hand, rising anticipations of a Bank of England interest rate hike helped the currency to recover from 10-month lows touched last week.

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