LONDON (Reuters) – Sterling fell on Tuesday to its lowest level against the dollar this year as investors weighed the impact of new restrictions to stem a new wave of Covid-19 infections across Europe, while expectations of a US interest rate hike gave the greenback support. .
And sterling fell to 1.3344 dollars, touching its lowest level since December 22, after US President Joe Biden nominated Federal Reserve Chairman Jerome Powell for a second four-year term, which reinforces market expectations of interest increases next year in the United States.
And at 16.50 GMT, the British currency was down 0.13 percent against the US currency at 1.3383 dollars.
Against the European currency, which was supported by better-than-expected growth in corporate activity in the euro zone, sterling fell 0.38 percent to 84.20 pence per euro, not far from its lowest level in 21 months of 83.80 pence recorded in the previous session.