The pound weakened versus the dollar after minutes of the Bank of England’s December meeting showed policy makers voted 7-2 to keep interest rates at a record low.
Switzerland has sidestepped the threat to its franc posed by the referendum on gold reserves. Now the focus turns to containing the fallout from the European Central Bank’s stimulus program.
The yen dropped to a seven-year low against the dollar as investors bet Japan’s Prime Minister Shinzo Abe will win an early election, renewing his mandate to pursue stimulative monetary policy and structural changes.
U.K. government bonds rallied after the Bank of England cut its growth forecasts and said inflation will slow further in coming months. Sterling fell.
Treasuries fell for a second day, pushing 10-year yields up the most in two weeks, as a report showed housing starts rose more than forecast last month.
Currency traders are betting that Scottish nationalists’ bid for independence will fail today.
The pound fell a third day versus the dollar as data showing U.K. consumer confidence dropped in July and house prices grew at the slowest pace since April 2013 damped demand for Britain’s currency.
Hedge funds and other large speculators cut their net wagers on a sterling advance by 28,915 contracts in the past three weeks, the biggest reduction in a year.
Price swings in the dollar against the yen measured by options fell to a record as signs of an uneven U.S. economic recovery fueled bets the Federal Reserve will keep borrowing costs at unprecedented lows.
The pound reached the strongest level in 20 months versus the euro as speculation the Bank of England is moving closer to raising interest rates boosted the allure of U.K. assets.