On Thursday, the British pound remained stable ahead of the Bank of England’s rate decision later in the day. The dollar was weaker as it awaited new market developments, with currencies trading in narrow ranges after a holiday in the United States.
Sterling was at $1.2719, while the euro rose slightly to $1.0747. The dollar slipped against the yen to 157.99, but was not far from a recent low. Against a basket of currencies, the dollar was steady at 105.23.
The Bank of England is expected to keep rates unchanged, with a focus on potential future easing measures. Recent data showed British inflation reaching its 2% target, but underlying price pressures remain. The Swiss National Bank is likely to lower its key policy rate, given the strong Swiss franc and low domestic inflation.
The Swiss franc remained strong against the euro, while the Australian and New Zealand dollars held steady. New Zealand’s economy grew faster than expected in the first quarter, but market views on its rate outlook remained unchanged.
Overall, currency markets were cautious ahead of central bank decisions and economic data releases.