UK Pound Fails To Hold On To Gains Even As Dollar Eases; GBPINR Turns Sluggish

Published on Oct 05, 2023 14:12

The pound failed to hold on to positive terrain despite a pull back in dollar overseas. Dollar gave back some of its recent gains in early Asia today as overnight data reduced bets that the Fed would go ahead with interest rate hikes. The dollar index came off 11-month high and was quoting marginally lower at 106.49. However, recovery in the UK currency was short-lived amid concerns of deteriorating demand in the country owing to higher interest rates. UK services PMI in September pointed to a sustained downturn with PMI staying below neutral 50 thresholds. Reduced volumes of service sector activity were attributed to sluggish business conditions, heightened risk aversion among clients and downward pressure on demand in the wake of rising borrowing costs. GBPUSD was seen trading at $1.2134, down 0.07% on the day. On the NSE, GBPINR October futures contract turned sluggish after registering some gains earlier in the day. The pair was trading at 101.07.