Sterling slips as dollar regains footing

Thursday,   29-Sep-2022   01:48 PM (IST)

Sterling fell on Thursday and the U.S. dollar was clawing back a recent dip as relief at the Bank of England's intervention in bond markets faded in the face of nagging doubts about Britain's economic management and the outlook for global growth. The British currency jumped the most since mid-June on Wednesday after the BoE announced an emergency bond-buying plan to shore up a gilt market that had been in freefall with the pound. But sterling was 0.8% lower at $1.0798 by mid-session in Asia and the euro weakened 0.6% to $0.9679, as the U.S. dollar regained its footing. Sterling plummeted to a record low of $1.0327 on Monday as investors delivered a scathing verdict on Britain's plans for tax cuts funded by a massive increase in borrowing at the same time as the BoE is struggling to rein in inflation. Appearances from Bank of England officials David Ramsden, Silvana Tenreyro and Huw Pill later on Thursday will be closely watched and as will an address by finance minister Kwasi Kwarteng to his Conservative Party on Monday.