GBP Slumps to New Low as Fed Officials Pledge More Rate Hikes

The British Pound hit a new September low on Tuesday, reaching just above 1.3300 after falling through its resistance level of 1.3400 for the fourth time since the Fed raised interest rates on September 16.

This decline is largely attributed to Fed officials' arguments in favor of another rate increase before the end of the year, which would make Dollar deposits more attractive and encourage investors to swap Pounds for Dollars.

The UK's Bank Rate has been at 3.75% since December, with the midpoint of the Fed's range being an eighth of a point above this rate, making it less competitive.