The dollar rose slightly on Monday as investors spent the past week digesting central bank monetary policy decisions and awaited the Bank of England’s crisis decision on Thursday.
In a busy week for central banks, the European Central Bank raised rates by 25 basis points on Thursday, leaving the door open to more hikes, while the Bank of Japan’s decision on Friday to stick with its ultra-easy policy kept things fragile.
The pound is changing hands near 14-month highs against the dollar on expectations that UK rate hikes will outpace other major economies. The pound was roughly flat at $1.28175.
Money markets have a 75% chance of the BoE deciding to hike by 25 basis points and a 25% chance of a 50 basis point jump.