# Pound dips against dollar amid mounting expectations of Bank of England rate increase

> The pound fell about 0.5% against the dollar and dropped below $1.33 as markets priced four quarter-point Bank of England hikes this year, up from two cuts before the conflict. The Iran-related blockade of the Strait of Hormuz, which carries about 20% of world oil and LNG, drove the shift.

- Date: 2026-03-23 · published 2026-03-23T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/20435-pound-dips-against-dollar-amid-mounting-expectations-of-bank-of-england-rate
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Expectations of tighter policy and a firmer dollar on Hormuz disruption tighten financial conditions and raise energy costs for feed producers. Currency effects on dollar-priced grain and meal are limited.

## Read by commodity

- DXY: bullish ▲
- WTI: bullish ▲
- GBPUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-09-21 | [Reactions: Bank of England bashes pound after halting rate rises](https://feedsoft.ai/events/34354-reactions-bank-of-england-bashes-pound-after-halting-rate-rises.md) | +1.7% | +2.3% |
| DXY | 2022-10-31 | [Dollar gains on Fed rate hike expectations](https://feedsoft.ai/events/39325-dollar-gains-on-fed-rate-hike-expectations.md) | -0.1% | -2.8% |
| DXY | 2022-06-20 | [US dollar to remain resilient amid the re-pricing higher in Fed's rate expectations – ING — Octa](https://feedsoft.ai/events/41145-us-dollar-to-remain-resilient-amid-the-re-pricing-higher-in-fed-s-rate.md) | -0.9% | +1.0% |
| DXY | 2023-03-15 | [Euro Slumps against Pound and Dollar as European Banking Fears Rise](https://feedsoft.ai/events/10082-euro-slumps-against-pound-and-dollar-as-european-banking-fears-rise.md) | -0.1% | -1.2% |
| DXY | 2020-09-17 | [Sterling slips after dollar rebound; focus on Bank of England \| Financial Post](https://feedsoft.ai/events/51374-sterling-slips-after-dollar-rebound-focus-on-bank-of-england-financial-post.md) | +1.6% | +0.6% |
| WTI | 2026-10-29 | [December Rate Hike Expectations and Expensive Oil: The Dollar Is Back on Top \| Investing.com](https://feedsoft.ai/events/17043-december-rate-hike-expectations-and-expensive-oil-the-dollar-is-back-on-top.md) | -2.3% | — |
| WTI | 2026-07-29 | [Ringgit shows slight gain against US dollar amid Fed meeting anticipation \| Malay Mail](https://feedsoft.ai/events/18625-ringgit-shows-slight-gain-against-us-dollar-amid-fed-meeting-anticipation-malay.md) | -2.7% | +8.2% |
| WTI | 2021-10-12 | [Won fades to 14-month low against dollar amid inflation concerns - The Korea Herald](https://feedsoft.ai/events/44798-won-fades-to-14-month-low-against-dollar-amid-inflation-concerns-the-korea.md) | +2.4% | +1.7% |

## Sources

- uk.finance.yahoo.com: https://uk.finance.yahoo.com/news/pound-dollar-bank-of-england-interest-rate-101231377.html

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