Sterling hits 3-week lows as BoE rate hike optimism dissipates

LONDON: Sterling fell to a fresh three-week low on Thursday as rising political uncertainty prompted investors to cut their long positions put in place after the Bank of England signalled a potential rate hike.

The British pound fell 0.8 percent to $1.3144 against the dollar, its lowest since Sept. 14 when the Bank of England meeting took place.

The BoE surprised investors when it said most of its rate-setters thought it was likely that borrowing costs would need to rise "in the coming months", as it saw growing upward pressure on inflation.