By Sara Sjolin, MarketWatch
Dollar index slips to more than one-month low
The pound rose for a fourth straight session on Monday, continuing its push higher after last week's hawkish surprise from the Bank of England when a member voted to increase interest rates.
Sterling climbed to $1.2424, up from $1.2397 late Friday in New York and trading around its highest level in three weeks.
The sterling surge comes after Bank of England member Kristin Forbes at last week's policy-setting meeting took most investors by surprise and voted for a rate hike. U.K. interest rates are currently at a record low -- and expected to stay there for a while -- which most central bank members consider necessary to weather any Brexit-related hit to the U.K. economy.
"The recent rebound of sterling was helped by [Forbes's] vote on a rate hike. However, from a broader scope, the uncertainty associated with the Brexit procedure until the final Brexit deal is done, and the turmoil over a second Scottish referendum, is likely to pose downside risks on the U.K. economy and sterling," said Devata Tseng, technical analyst at FxPro, in a note.
Scotland's First Minister Nicola Sturgeon last week called for a new Scottish independence referendum in response to U.K. Prime Minister Theresa May's plans to aim for a so-called hard Brexit. That's the scenario in which Britain gains full control of its borders but in return loses access to the EU's single market.
A media report over the weekend (http://www.express.co.uk/news/uk/780978/theresa-may-snap-general-election-snp-nicola-sturgeon-tory-election-fraud) said prominent members of May's Conservative party are pushing for a snap election as early as May 4.
In other currencies on Monday, the dollar traded mostly lower. The ICE Dollar Index was down 0.1% at 100.19, trading around its lowest level in more than a month.
The euro rose to $1.0753 from $1.0738 late Friday in New York. The yen fell, with the greenback buying Yen112.82, compared with Yen112.69 on Friday.
(END) Dow Jones Newswires
March 20, 2017 06:17 ET (10:17 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.