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Pound Plummets Below $1.31 On BoE

Published 02/11/2017, 12:51

The pound has plummeted following the widely expected rate hike from the BoE with sterling dipping below the 1.31 handle against the US dollar after falling in excess of 1%. The market is clearly seeing this as a dovish hike and the cautious comments in the accompanying statement have led many to believe that this is a case of one-and-done rather than the start of a sustained hiking cycle. The rapid drop in the pound has provided a boost to the FTSE with the index surging back above the 7500 level to trade within striking distance of its all-time high.

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