GBP Plummets to 1.3500 as Fed Rate Hike Looms

The British Pound (GBP) has dropped to near 1.3500 against the US Dollar (USD) amid expectations of a 25 basis points interest rate hike by the Federal Reserve (Fed) in its upcoming policy meeting.

This move comes as the US Dollar Index (DXY) trades 0.13% higher to near 99.78, with a 67% chance of a rate hike according to the CME FedWatch tool.

Catherine Mann, a Bank of England (BoE) Monetary Policy Committee (MPC) member, has favored an early interest rate hike to counter risks of high inflation projections, stating 'it's better to be a little bit too high and then correct if necessary.'