Pound tests five-month low as dollar index shows overwhelming strength

The British Pound cut some losses today after a near 1% slide in last session. Pound was hit and the GBP/USD pair sank towards 1.3140 mark testing around five-month low as US dollar index soared above 99 mark and hit its two-week high after the US Fed chair Jerome Powell indicated that it is not a certainty that Fed will deliver another rate cut in next meeting December. Pound managed to stabilize thereafter though as firm UK equities capped losses. Latest data showed that UK lenders approved 65900 mortgages in September, the highest level since December last year. Pound edged up above 1.3200 mark against the US dollar with the focus now shifting to Bank of Englands interest rate action next week. Meanwhile, the Fed has cut its benchmark interest rate by 25 basis points to 3.75%4.00% yesterday. On NSE, GBP/INR futures are currently trading at 117.11, up 0.16% on the day.

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