The British pound weakens against the dollar after the Federal Reserve’s 9-3 vote split signals internal policy divergence.
GBP/USD fell to around 1.3450 in Asian trading Friday, snapping a three-day rally. The decline followed the Federal Reserve’s decision to hold rates steady for a fifth meeting, though a 9-3 vote split revealed sharp internal disagreement over the policy path, bolstering the USD.
The Fed’s hawkish pause contrasted with expectations, while the Bank of England’s 6-3 vote to hold rates—with one dissenting hawk—surprised markets. Analysts noted the BoE’s committee appeared comfortable with the status quo despite inflation concerns.
Safe-haven demand for the USD eased slightly amid diplomatic progress in the Middle East, including a reported disarmament deal between Israel and Hamas. This could limit further USD gains if risk sentiment improves.