The British pound experienced a drop on Wednesday after September inflation figures fell short of forecasts, maintaining the rate at 3.8% and raising speculation of a potential early rate cut by the Bank of England. This decline saw the pound fall by up to 0.5% against the dollar.
Market analysts, including Francesco Pesole from ING, observed that the Bank’s previous hawkish signals are now questioned as the inflation outlook proves softer than expected. Investors are now weighing a 75% chance of a rate cut by year-end, up significantly from previous predictions.
In Japan, the yen saw its biggest monthly decline since July as Prime Minister Sanae Takaichi prepares a significant economic stimulus package. Meanwhile, the U.S. dollar faced diverse pressures with a minor decrease against the yen and mixed movements in its index, which tracks its strength against multiple other currencies.
(With inputs from agencies.)
