Pound Falls for Third Day Amid US Rate Hike Bets and Slowing Business Growth
The British pound has fallen for three consecutive days as investors bet on a series of US rate hikes. Sterling's value against the dollar is down 0.45% to $1.328, despite oil prices dipping below $99 per barrel.
Oil prices are currently trading at their lowest level since early September, but the impact on the pound has been minimal due to investors' confidence in a stronger US economy.
A survey released on Wednesday showed that growth in British business activity has slowed down, with the S&P Global UK Services Purchasing Managers' Index (PMI) falling to 51.7 from 52.5 in August.
According to Matthew Ryan, head of market strategy at Ebury, 'growth in Britain's economy has been remarkably resilient so far this year, though we think that a slowdown is almost inevitable during the remainder of the year.'