Sterling Retreats Amid Focus on Monetary Policy and Intervention Risk
The British pound has lost some of its recent gains against both the US dollar and Japanese yen as traders focus on monetary policy signals and official intervention risk.
A three-day winning streak for sterling against the dollar came to an end, with the currency falling 0.18% to $1.3457 after reaching its highest level since July 16 at $1.35055 earlier in the session.
Against the yen, sterling dropped 0.50% to 211.11, its lowest level since March 5, while also edging 0.13% lower against the euro.
The new British government's cautious fiscal stance has helped ease investor concerns that had built a political risk premium into sterling, supporting the currency late last week despite the dovish message from the Bank of England's policy meeting.