UK Pound Holds Near One-Month High Against Dollar; GBPINR Stays Firmly Above 105 Mark

Published on Mar 07, 2024 15:10

UK Pound is seen losing slight momentum by the European session on Thursday but continues to hold around a one-month high against the dollar. The dollar index dropped lower to a month low following Federal Chair Powell�s statement that it will likely be appropriate for the Fed to begin lowering interest rates at some point this year, although he reiterated committee need greater confidence that inflation is moving sustainably toward 2 percent. Weaker than expected labor market data also weighed on the greenback. The dollar index that measures the greenback against a basket of currencies was quoting at 103.23, down 0.09% on the day. GBPUSD is trading at $1.2735, down marginally after hitting a one-month high of $1.2763 yesterday. Gains in the UK currency came on the back of measures outlined in the United Kingdom budget 2024. Chancellor of the Exchequer Jeremy Hunt announced a two-percentage cut to National Insurance Contributions (NICs), saving the average earner around 450 pounds this year. Jeremy Hunt announced that the OBR had raised growth forecasts for 2024 and 2025 to 0.9% and 1.9%, respectively. Meanwhile, data today showed UK Halifax house prices increased for the fifth consecutive month in February. House prices advanced 0.4 percent from January. This followed a 1.2 percent gain in January and the expected 0.8 percent increase. On the NSE, GBPINR futures climbed to 105.52, up 0.10% on the day.