The British pound is on track to record its steepest weekly decline since January 2023, by about 2%, and last rose by 0.06% to $1.2676.
The dollar recorded its best weekly performance in more than a month on Friday, supported by expectations of an interest rate cut by the Federal Reserve and a view that Donald Trump’s policies may increase inflation when he takes office in January.
The dollar hovered near a one-year high against a basket of currencies at 106.81 and was looking for a weekly gain of 1.76%, which would represent its best performance since September.
Federal Reserve Chairman Jerome Powell said Thursday that the central bank does not need to rush to cut interest rates, citing continued economic growth, a strong labor market and steady inflation as reasons to be wary of easing policy too quickly.
