Sterling idles near 37-year low

LONDON: The British pound was little changed against the dollar on Tuesday, hovering barely above its lowest level since 1985, ahead of expected interest rate hikes from the Bank of England (BoE) and Federal Reserve (Fed).

In what is expected to be a big week for the pound, it also faces a “fiscal event” from British finance minister Kwasi Kwarteng, expected on Friday, where he is due to deliver more details on the size of the government’s energy support package. At 0933 GMT, the pound was little changed against the dollar at $1.1432, just above last week’s 37-year low of $1.1351. Against the euro, the pound was up 0.1% at 87.575 pence.

Money markets fully price in a half-point rate hike from the BoE on Thursday, with around a 75% chance of a larger 75 basis point rate rise, according to Refinitiv data.