AGL 5.50 Decreased By ▼ -0.10 (-1.79%)
ANL 8.62 Decreased By ▼ -0.28 (-3.15%)
AVN 75.84 Decreased By ▼ -1.14 (-1.48%)
BOP 5.18 Decreased By ▼ -0.07 (-1.33%)
CNERGY 4.51 Decreased By ▼ -0.14 (-3.01%)
EFERT 81.09 Decreased By ▼ -0.13 (-0.16%)
EPCL 49.94 Decreased By ▼ -0.09 (-0.18%)
FCCL 12.51 Decreased By ▼ -0.65 (-4.94%)
FFL 5.52 Decreased By ▼ -0.18 (-3.16%)
FLYNG 6.87 Decreased By ▼ -0.23 (-3.24%)
FNEL 4.63 Decreased By ▼ -0.13 (-2.73%)
GGGL 8.53 Decreased By ▼ -0.27 (-3.07%)
GGL 14.22 Decreased By ▼ -0.38 (-2.6%)
HUMNL 5.58 Decreased By ▼ -0.09 (-1.59%)
KEL 2.62 Decreased By ▼ -0.01 (-0.38%)
LOTCHEM 27.98 Decreased By ▼ -0.67 (-2.34%)
MLCF 23.68 Decreased By ▼ -1.01 (-4.09%)
OGDC 71.64 Decreased By ▼ -0.87 (-1.2%)
PAEL 15.33 Decreased By ▼ -0.04 (-0.26%)
PIBTL 4.87 Decreased By ▼ -0.11 (-2.21%)
PRL 15.80 Decreased By ▼ -0.40 (-2.47%)
SILK 1.04 Decreased By ▼ -0.03 (-2.8%)
TELE 8.92 Decreased By ▼ -0.28 (-3.04%)
TPL 7.04 Decreased By ▼ -0.21 (-2.9%)
TPLP 18.31 Decreased By ▼ -0.39 (-2.09%)
TREET 21.03 Decreased By ▼ -0.67 (-3.09%)
TRG 134.51 Decreased By ▼ -2.04 (-1.49%)
UNITY 16.57 Decreased By ▼ -0.45 (-2.64%)
WAVES 9.34 Decreased By ▼ -0.55 (-5.56%)
WTL 1.36 Decreased By ▼ -0.05 (-3.55%)
BR100 4,155 Decreased By -70.3 (-1.66%)
BR30 15,289 Decreased By -229.2 (-1.48%)
KSE100 41,613 Decreased By -537.4 (-1.28%)
KSE30 15,360 Decreased By -228.1 (-1.46%)
Follow us

LONDON: Sterling rose on Tuesday to touch a pre-pandemic high versus the euro, supported by expectations that the Bank of England will raise interest rates further.

The pound edged 0.1% higher versus the euro at 83.35 pence by 1600 GMT, after touching its highest level versus the single currency since February 2020.

Against the dollar, it rose 0.2% at $1.3611, hovering around its highest level since Nov. 4, when the pound slid 1.5% on the day after the BoE surprised the market by keeping interest rates unchanged.

Over the past weeks, investors have ramped up expectations that the BoE will raise interest rates as early as next month after a surprise hike in December by 15 basis points, to 0.25%.

You-Na Park-Heger, FX analyst at Commerzbank, said the prospect of interest rate hikes by the BoE is supporting sterling. But “quite a bit of it is likely to be priced in already so that the GBP rally could begin to run out of steam”, she added.

Jane Foley, head of FX Strategy at Rabobank in London, said sterling has also gained some support from signs of weakness in the US dollar. Against a basket of currencies, it was trading on Tuesday well below the 16-month highs it touched in November despite rising bets this month that the Federal Reserve will raise interest rates sooner than initially expected.

“The market is already holding long USD positions and this is making it difficult for the greenback to react to continued speculation about Fed policy tightening. This may allow cable freedom to push higher in the coming weeks,” Foley said.

Comments

Comments are closed.

Sterling steadies near 23-month high versus euro

Russia to provide crude oil to Pakistan at discounted rates: Musadik Malik

ECC approves wheat import of 450,000MT from Russia

Time to 'say no' to cartels, says PM, as energy bill touches $27bn

Rupee falls 0.1% against US dollar

Pakistan 'confident' perpetrators of Kabul attack will be brought to justice

KSE-100 falls 1.28% as uncertainty of IMF review persists

Oil up 3% on OPEC+ output plans and price cap on Russian crude

Taliban acting defence minister holds talks with UAE president

Brave England seal memorable victory over Pakistan

Security forces kill five terrorists in North Waziristan IBO: ISPR