# Sterling treads water at 3-month low after weekly drop on dollar rally | Reuters

> Sterling traded near a three-month low after a weekly drop driven by dollar strength. ING strategist Francesco Pesole said the pound is likely to struggle in coming months because the BoE is unlikely to hike as sharply as markets expect. The dollar rallied on expectations of tighter Federal Reserve policy.

- Date: 2026-09-25 · published 2026-09-25T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/17738-sterling-treads-water-at-3-month-low-after-weekly-drop-on-dollar-rally-reuters
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A stronger dollar on Fed hike expectations tends to pressure dollar-priced commodities and make US exports more expensive for foreign buyers. Sterling weakness mainly reflects the rate gap rather than a direct grain or feed supply change.

## Read by commodity

- DXY: bullish ▲
- GBPUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-08-30 | [Sterling steady but heads for weekly fall on dollar strength \| Reuters](https://feedsoft.ai/events/29065-sterling-steady-but-heads-for-weekly-fall-on-dollar-strength-reuters.md) | +0.2% | -0.9% |
| DXY | 2026-06-08 | [Sterling muscled toward two-month lows by robust dollar \| Reuters](https://feedsoft.ai/events/19062-sterling-muscled-toward-two-month-lows-by-robust-dollar-reuters.md) | -0.5% | +0.6% |
| DXY | 2022-09-26 | [Sterling hits all-time low versus broadly stronger dollar \| Reuters](https://feedsoft.ai/events/39829-sterling-hits-all-time-low-versus-broadly-stronger-dollar-reuters.md) | +0.2% | +0.6% |
| DXY | 2021-03-08 | [Dollar at 3-1/2-month high on firmer yields, U.S. growth \| Reuters](https://feedsoft.ai/events/48311-dollar-at-3-1-2-month-high-on-firmer-yields-u-s-growth-reuters.md) | -0.6% | -0.0% |
| DXY | 2022-11-17 | [Dollar rises with bets on hawkish Fed; sterling drops \| Reuters](https://feedsoft.ai/events/38594-dollar-rises-with-bets-on-hawkish-fed-sterling-drops-reuters.md) | +0.4% | -0.6% |

## Sources

- reuters.com: https://www.reuters.com/world/uk/sterling-treads-water-3-month-low-after-weekly-drop-dollar-rally-2026-09-25/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.