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

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.