Dollar falls on Thursday ahead of Bank of England meeting

Dollar falls on Thursday ahead of Bank of England meeting

BoE could be the first major cenbank to raise rates later Thursday.

The dollar fell on Thursday after losing ground on the day before when the U.S. Federal Reserve said it would not rush to raise interest rates, and the pound was on edge ahead of a closely watched Bank of England meeting.

The Fed was last at $1.3660 after it hit its week high in early Asian hours Thursday, down from its week high of $1.3698, which was initially led to the gains on the dollar.

The euro, which had also climbed on Wednesday, gave up some of its gains and stood at $1.15932.

The dollar index went up 0.15% on Thursday after Wednesday's 0.25% fall.

The Bank of England meeting would make it the first of the world's big central banks to raise rates since the coronaviruses, which could become the first of the world's big central banks to raise rates.

The markets are pricing in a rate rise from the BoE and a steady pace of rising in 2022, but economists polled by Reuters said it was too close to call as Britain, like much of the world,grapples with balancing rate rising to combat inflation with concerns about the growth outlook.

Minutes of BoE"s Monetary Policy Committee meeting are due at 12.00 GMT.

Jack Siu, a credit Suisse spokesman for G 10 said that the pace and scale of monetary policy tightening between central banks is the key driver to the G 10 currency market. We think the Bank of England will experience a bigger test as a result of the recent inflation uptick. We expect GBPUSD to remain in a range if policy rate expectations have gone too far, but we expect UK policy rate expectations have gone too far. Over night, the Fed announced a 15 billion monthly cut to its $120 billion in monthly purchases of Treasuries and mortgage-backed securities, but chairman Jerome Powell said the U.S. central bank would be patient in decisioning when to raise its overnight interest rate from zero levels.

Analysts at Bank of America were talking about Powell's snooze bar in a speech at the Fed's meeting.

The dollar is within a good leap of the dollar's multiyear high of 114.69 yen hit last month.

The Aussie dollar climbed slightly to $0.7453 as a result of the softer dollar, but has more work to recover from its 1.2% fall on Tuesday after the Reserve Bank of Australia took a dovish tone at its key meet.

In the world of cryptocurrencies. The price of Bitcoins was around $62,750 after it hit its all-time high of $67,000 last month. The world's second-largest coin, Ether, dropped by 0,5% to $4,581, recoming to its record high on the day before.