Pound Near $1.38 Amid Broad Dollar Weakness

2026-01-28 10:22 By Joana Ferreira 1 min. read

The British pound hovered just below $1.38, close to its strongest level since August 2021, supported by a weaker US dollar ahead of the Federal Reserve’s highly anticipated policy announcement later today, with investors seeking clues on the timing of the next rate cut.

The dollar slid to a near four-year low late Tuesday after President Trump said he was comfortable with its recent decline, amid government shutdown concerns, a soft consumer confidence report, and ongoing policy uncertainty in Washington, including renewed tariff threats and criticism of Fed independence.

At the same time, UK data from the BRC on Tuesday pointed to accelerating price pressures, raising concerns about persistent inflation and potentially limiting the Bank of England’s scope to cut interest rates in the near term.



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