Pound Hits Near Three-Month Low as Fed Hawkishness Bites

The British pound has hit its lowest level in almost three months against the US dollar, falling 0.10% to $1.3222 on Thursday.

This marks the fourth consecutive day of decline for sterling against the greenback, which is hovering around two-month highs due to the Federal Reserve's hawkish shift last week.

The Bank of England's rate outlook remains a key focus point, with Fed Chair Kevin Warsh defending the US central bank's independence despite pressure from President Donald Trump for lower borrowing costs.

Daragh Maher, senior forex strategist at HSBC, notes that 'the market is already priced for hikes from a Bank of England that still sounds somewhat unconvinced.'