The US dollar is on pace for its biggest rise in nearly two months as concerns about a slowing US economy, hawkish policy messaging, a US debt-ceiling standoff and the solvency of regional banks supported havens. The pound fell after the Bank of England lifted its policy rate 25 basis points and indicated more hikes may be required to slow inflation.

Eoin Treacy's view

The dollar firmed today as more of risk-off move than any other factor. When investors seek the haven of cash they end up holding dollars. Bond yields also compressed as some of that cash was redeployed in the expectation that during a recession, inflationary pressures are likely to go into reverse.