Pound Approaches 4-Month High Versus Dollar Before Fed Decision
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The pound approached a four-month high against the dollar amid speculation the Federal Reserve will announce a third series of bond purchases to stimulate growth in the world’s largest economy.
Sterling held gains from the past two days versus the U.S. currency as two-thirds of economists in a Bloomberg survey said the Fed will implement more quantitative easing after its two-day meeting ends today. Gilts rose after the Bank of England said its market contacts were skeptical that improving sentiment in the euro-area would be sustained. The U.K. sold 3.5 billion pounds ($5.64 billion) of 10-year bonds.