UK Pound Lingers Near 2-Week Low Ahead Of BoE Policy Outcome; GBPINR Eyes Break Below 105 Mark

Published on Feb 01, 2024 14:41

UK pound is maintaining negative bias at around two week low against the dollar ahead of BoE monetary policy outcome later today. Any dovish tone from the Britain central bank at a time when Fed out rightly dismisses a rate cut anytime soon would lead the pound tumbling sharply lower. Powell dismissing a Federal rate cut anytime soon is keeping dollar firm, in turn adding pressure on pound alongside other peer currencies. The dollar index is holding firmly at a seven week high at 103.58 following Federal Reserve announcement to maintain interest rates at current higher levels. The Fed also said it does not expect it will be appropriate to lower rates until it has gained greater confidence that inflation is moving sustainably toward 2 percent. Powell reiterated in his post-meeting press conference and said he doesn`t think it`s likely the central bank will reach that level of confidence by the time of the March meeting. GBPUSD is quoting at $1.2656, down almost half a percent on the day. On the NSE, GBPINR futures pair is eyeing a decline below 105 mark and currency trading at 105.04, down 0.33% on the day.