According to Beyond Time News, the British pound remained close to a 10-week high against the US dollar at the end of a busy week for global markets. Sterling traded around $1.3606 on Friday and edged slightly lower against the euro after a strong rise in the previous session.
Impact of Central Bank Decisions
The Bank of England kept interest rates unchanged during its latest meeting. Officials warned that inflation risks could increase due to ongoing tensions linked to the Iran conflict.
Governor Andrew Bailey said policymakers face a difficult decision in the coming months. He noted that delaying action until inflation becomes clear could lead to slower responses later.
Read more:Dollar, Pound, Euro and Other Currency Rates
Market Movements and Investor Activity
Analysts at ING Group suggested that Thursday’s sharp rise in sterling may have resulted from month-end portfolio adjustments. Fund managers often rebalance investments to maintain target allocations after market changes.
Trading activity remained limited on Friday due to public holidays across parts of Europe, which reduced market liquidity.
Outlook Remains Uncertain
Markets currently see a possible interest rate hike in June as uncertain. Expectations suggest two small increases may occur before September, but analysts caution that the outlook depends heavily on global developments.
Experts at Morgan Stanley noted that if energy supplies from the Middle East stabilise, rate hikes may not be necessary this year. However, prolonged disruptions in oil and gas supplies could push inflation higher and make tightening more likely.
Other Central Banks Hold Rates
Other major institutions, including the European Central Bank, Federal Reserve, and Bank of Japan, also decided to keep interest rates unchanged during the week, reflecting a cautious global approach amid economic uncertainty.
