Sterling fell in European trade on Thursday against a basket of major rivals, extending losses for the third straight session against the dollar and hitting a four-week trough, before the Bank of Englands policy decision later today, widely expected to hold rates flat at 4.25%.

The US dollar continues to muscle up against main rivals on haven demand as the Israel-Iran conflict worsens, and after the Fed raised its inflation outlook this year.

The Price

The GBP/USD price fell 0.3% today to $1.3387, the lowest since May 21, with a session-high at $1.3429.

Sterling shed 0.1% on Wednesday against the dollar on risk aversion.

The BOE

The Bank of England is widely expected to maintain UK interest rates flat at 4.25%, the lowest since March 2023.

US Dollar

The dollar index rose 0.2% on Thursday, expanding the gains for the fifth straight session and hitting a week high against a basket of major rivals.

The Federal Reserve also raised its inflation outlook for 2025 and alluded to the difficulty of cutting interest rates before knowing the full impact of tariffs on prices.