# Sterling falls against dollar and euro on 'dovish' UK rate hike

> Sterling extended losses after the Bank of England raised rates by 50 basis points, with two of nine policymakers voting for no change. The pound fell as much as 1.1% against the dollar to $1.228, while the euro rose more than 1% against sterling after the ECB signalled further hikes.

- Date: 2022-12-15 · published 2022-12-15T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/38477-sterling-falls-against-dollar-and-euro-on-dovish-uk-rate-hike
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

The split vote suggests the BoE may peak lower than expected, which weakens sterling against the dollar and euro. Currency moves of this size shift the import cost of US-priced feed ingredients for UK buyers.

## Read by commodity

- EURUSD: bullish ▲
- GBPUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2022-09-28 | [Sterling, euro rally against dollar after Bank of England buys UK bonds](https://feedsoft.ai/events/39830-sterling-euro-rally-against-dollar-after-bank-of-england-buys-uk-bonds.md) | +3.8% | +4.7% |
| EURUSD | 2023-03-16 | [Euro rises, dollar falls after ECB rate decision](https://feedsoft.ai/events/10083-euro-rises-dollar-falls-after-ecb-rate-decision.md) | +2.4% | +4.3% |
| EURUSD | 2023-01-31 | [Expect Pound Sterling Weakness against Euro, Dollar in Wake of Bank of England: CIBC](https://feedsoft.ai/events/38020-expect-pound-sterling-weakness-against-euro-dollar-in-wake-of-bank-of-england.md) | -1.3% | -2.4% |
| EURUSD | 2021-10-28 | [Dollar falls on euro strength after ECB meeting as rates move \| Financial Post](https://feedsoft.ai/events/44744-dollar-falls-on-euro-strength-after-ecb-meeting-as-rates-move-financial-post.md) | -0.1% | -2.6% |
| EURUSD | 2020-03-02 | [Euro Exchange Rate Reaches 5-Week-Best As Rivals Pound Sterling And Dollar See Large Losses \| Exchange Rates UK](https://feedsoft.ai/events/6188-euro-exchange-rate-reaches-5-week-best-as-rivals-pound-sterling-and-dollar-see.md) | +2.9% | +0.5% |

## Sources

- irishexaminer.com: https://www.irishexaminer.com/business/economy/arid-41029436.html

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