STERLING HITS FRESH SIX-MONTH LOW AGAINST DOLLAR AS BOE SEEN DONE WITH HIKES

Sterling fell to a fresh six-month low against a strengthening dollar on Wednesday as markets are pricing in that the Bank of England (BoE) is done hiking interest rates as the economy deteriorated, while British inflation subsided.

Sterling is set for the biggest monthly drop since August 2022, down more than 4% in September, as money markets are pricing in no further BoE rate hikes this year, according to LSEG data. Traders also expect the central bank to start cutting rates next summer.

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