(Bloomberg) -- The pound is set for a weekly decline against the dollar on speculation the currency's recent rally already reflects prospects that the Bank of England will raise interest rates twice more this year to ward off inflation.
The pound last week soared to a 26-year high, breaching the $2 level, as traders increased bets the central bank will lift the benchmark rate twice more this year after inflation breached its target by more than a percentage point. The bank has indicated it expects the pace of price increases to moderate toward the year end, which may limit the scope for higher borrowing costs.
Read more at Bloomberg Currencies News
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