UK Pound Struggles Near Two-Week Low Against Dollar; GBPINR Slides Below 101 Mark

Published on Oct 19, 2023 14:49

UK`s pound loses ground and plunges to a two week low below $1.22 mark on the back of sharp spike in US treasury yields and rebound in dollar in overnight trades. Benchmark US treasury yields surged to near 5% mark driving dollar higher ahead of Fed Powell`s speech later in the global day awaiting cues on Federal stance on monetary path going forward. Recent set of data from the US points to significant improvement in the economy which reinstates possibility of Fed holding on to higher rates for long. Meanwhile, escalating tensions in Middle East is also keeping dollar supported, weighing down the Sterling. The dollar index is quoting at 106.43. Meanwhile, GBPUSD is trading lower by 0.3% at $1.2110, a two-week low. UK retail sales data tomorrow will likely guide onward direction for the currency. On the NSE, GBPINR October futures are extending downside and trading at 100.82, down 0.65% on the day.