Currencies: British pound slides to 2-month low as rate-hike hopes fade

The pound dropped to a two-month low versus the dollar on Tuesday, slipping below $1.27 after Bank of England Gov. Mark Carney ruled out an imminent rate increase and extending losses as worries emerged over Prime Minister Theresa May’s ability to strike an agreement that would allow her Conservatives to maintain a minority government.

Sterling GBPUSD, +0.0396% tumbled to $1.2621, plumbing levels last seen on April 17, after trading as high as $1.2758 earlier in the session. It traded at $1.2738 late Monday in New York.

Initial pressure came after Carney, in a speech Tuesday morning to bankers at Mansion House, said “now is not yet the time” to begin tightening monetary policy.

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