Pound Tumbles Ahead of Bailey Testimony Amid Oil Price Jitters

The British pound dropped to $1.3529 against the US dollar on September 8, marking a 0.12% decline.

This decrease comes as investors await testimony from Bank of England policymakers, including Governor Andrew Bailey, Deputy Governor Dave Ramsden, and committee members Megan Greene and Alan Taylor, before the Treasury Select Committee.

Market expectations are that the BoE will hold interest rates at 3.75% in its upcoming meeting, despite recent concerns about inflation due to rising oil prices. Oil prices have surged to nearly $100 a barrel following Iran-backed Houthi attacks on Saudi energy facilities and Tehran's threats against the US.

Analysts from Barclays expect a 6-3 vote in favor of holding interest rates, with possible dissent from committee members Greene, Mann, Pill, Lombardelli, or Ramsden. The British central bank kept interest rates steady in July, waiting for clearer signs on inflation's impact.