The monetary unit of the U.K. marked a second consecutive trading session of losses on Wednesday as market sentiment indicated the recent bullish trend was overdone, according to Bloomberg.
The pound lost value against all but five of its major counterparts during the midweek trade session. Governor Mark Carney with the Bank of England is preparing to deliver testimony on Thursday, which is likely to impact the performance of the pound.
"The rally in sterling looked a little excessive above $1.70," head of currency strategy Jeremy Stretch with Canadian Imperial Bank of Commerce in London told Bloomberg on Wednesday. "The market is repricing a little the degree of certainty it had over bringing forward rate-hike expectations. There may be also concern that if we are going to see macro-prudential measures announced tomorrow, it might mitigate the impact of rate increases."
The pound dipped nearly 0.1 percent against the greenback on Wednesday after touching its lowest rate in about one week earlier during the day.
Reuters reports the pound has precipitously dropped from its top value since early late 2008 against the greenback, which it touched last week.
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