Pound near two and half month low against US dollar, IMF expects further rate cuts in UK

The British Pound is witnessing tepid moves today, consolidating around two and half month lows against the US dollar. Dollar index has been soaring recently and there have been some worries around the near-term economic outlook for the UK. The International Monetary Fund (IMF) has noted this week that it expects UK interest rates to drop from the current 4.25% to 3.75% over next few months. In an update to its World Economic Outlook, the IMF said it expects the UK economy to grow by 1.2% this year and 1.4% in 2026. Meanwhile, the US Federal Reserve held interest rates steady between the range 4.25% to 4.5%. This pulled down the GBP/USD around 1% in last session and the pair currently quotes at 1.3239, almost unchanged on the day. On the NSE, GBP/INR futures are trading at 116.15, down 0.78% on the day, witnessing a sustained correction throughout the session.

Powered by Capital Market - Live News