GBP Surges on BoE Hawkish Hold as USD Weakens Amid Suspected Yen Intervention

The British Pound surged against the US Dollar after the Bank of England's decision to hold interest rates unchanged, in a 6-3 vote. This decision was widely expected by investors, but having three dissenters suggested that the board is tilted more hawkish than anticipated.

MPC members Greene, Mann, and Pill opted for a 25-basis-point rate hike. In response to their views, BoE Governor Andrew Bailey stated there's no evidence of second-round effects, but emphasized the bank stands ready to adjust policy as the outlook evolves.

The GBP/USD pair climbed by 0.40%, trading at 1.3430. The US Dollar Index (DXY) collapsed by over 0.60% due to suspected intervention in the Japanese Yen, which weakened the Greenback against most G8 currencies.