Pound Fluctuates Amid Rate Decisions and Geopolitical Tensions

The British pound fluctuated as investors awaited the Bank of England's rate decision. Factors influencing the currency included UK wage data, U.S. tariffs, and geopolitical events, such as the Ukraine conflict. The pound rose then fell against the dollar, reflecting broad economic tensions.

The British pound saw notable fluctuations as investors awaited the Bank of England's decision on interest rates. The anticipation comes amid broader concerns surrounding U.S. tariffs and geopolitical developments, including the ongoing conflict in Ukraine.

Earlier, the pound climbed to its highest since early November, but later dipped 0.2% against the dollar. The currency, alongside the euro, has strengthened since January due to apprehensions about U.S. economic policies and defense spending in Europe.

Experts predict the Bank of England will maintain a cautious approach, likely holding rates at 4.5%, as it monitors the impact of international economic policies. Meanwhile, the U.S. dollar also experienced minor fluctuations, remaining near a five-month low.

(With inputs from agencies.)