The British pound stabilized Tuesday as investors grew skeptical regarding the Bank of England’s timing of an interest rate hike.
Because of the central bank’s quarterly inflation report released three weeks ago, as well as the gloomy Chinese economy, traders are doubting whether the Federal Reserve and the BOE can tighten policy in the following months.
Sterling stood at 72.68 pence per euro from Monday’s 74.21 pence. Against the US dollar, the pound finished at $1.5775.
The frailty in emerging markets is spreading to developed market outlook, questioning the extent of likely rate hike “over the coming months in the US and the UK,” said analysts at RBC Capital.
The material has been provided by InstaForex Company – www.instaforex.com