UK POUND ASCENDS TO OVER 2-MONTH HIGH AGAINST DOLLAR; GBPINR RECLAIMS 104 MARK

Published on Nov 21, 2023 14:24

UK pound continues to scale higher over a two month high against the dollar on Tuesday amid a bearish trend in greenback. The dollar index that measures the greenback against a basket of currencies is lingering close to 103 mark, dragged down by falling US benchmark treasury yields amid reduced expectations of a Federal rate hike going forward. However, the upcoming minutes of FOMC this week would be crucial for further guidance on policy action. GBPUSD is currently quoting at $1.2532, up 0.15% on the day. Meanwhile, BOE�s Bailey statement on Monday that it is far too early to be thinking about rate cuts is also supporting pound. How long a restrictive stance will be needed will ultimately depend on what the incoming data tell us about the outlook for overall consumer price inflation over the medium term. The MPC�s latest projections indicate that monetary policy is likely to need to be restrictive for quite some time yet, Bailey said. Meanwhile, GBPINR futures on NSE were up 0.45% at 104.40.