Sterling hits 26-year high vs dollar, above $2.065
LONDON, Oct 30 (Reuters) - Sterling hit a 26-year peak against the dollar on Tuesday, propelled higher by fading expectations of a UK interest rate cut as soon as next week.
Comments from Bank of England Monetary Policy Committee member Kate Barker on Monday were interpreted as suggesting that a rate cut from the current 5.75 percent is not yet imminent.
She was quoted as saying that the question for policymakers is whether things have changed so much in the UK economy since August that rates need to come down.
"The pound is getting support from Kate Barker who questioned the need for an interest rate reduction," said Adam Cole, head of FX currency strategy at RBC Capital Markets. The pound rose as high as $2.0660 according to Reuters data, surpassing a previous 26-year peak of $2.0655 set in July.
Source supplied by: Reuters