Pound Rises Amid Fed Signals and French Political Unrest

The British pound rose against the dollar following dovish comments by Federal Reserve Governor Christopher Waller. Political turmoil in France kept the currency steady against the euro. The US Fed may cut rates in December, while the Bank of England is expected to maintain rates amid UK's relative political stability.

The British pound increased its value against the dollar on Tuesday. Federal Reserve Governor Christopher Waller's comments, which suggested a dovish stance, provided a boost to the currency's performance, helping it recover some of Monday's losses.

Meanwhile, political turmoil in France left investors cautious. Prime Minister Michel Barnier faces no-confidence votes from opposition parties amid disagreement over his budget, which proposes tax hikes and spending cuts.

In light of these developments, the currency market shows a mixed outlook, with the pound steady against the euro. Economic analysts suggest the Bank of England stands steady amidst the prevailing rate environment, while the US Fed considers additional rate cuts.

(With inputs from agencies.)