Sterling Holds Near 10-Week High After BoE Meeting
Sterling held a 10-week high as the Bank of England warned of inflation risks. Governor Andrew Bailey kept policy on an active hold amid Middle East tensions.
United Kingdom sterling held near a 10-week high at $1.3606 against the United States dollar on Friday. The GBP/USD pair stabilized after jumping on Thursday as the Bank of England maintained interest rates. Investors are weighing inflation risks from the Iran war against potential BoE rate hikes in June.
Sterling was little changed at $1.3606 and softened slightly to 86.32 pence against the euro. ING analysts said Thursday's rally likely stemmed from month-end flows as portfolio managers rebalanced into British assets following April's underperformance. Fund managers restored fixed regional allocations by purchasing assets after market moves.
