# Pound sterling (GBP) plunges against the dollar (USD) and euro (EUR) as Bank hikes interest rates

> Sterling fell 0.91% against the dollar and 1.32% against the euro after the Bank of England raised its base rate to 0.5%. Analysts attributed the drop to the central bank's gradual-pace guidance, which suggested limited further tightening.

- Date: 2017-11-02 · published 2017-11-02T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/68237-pound-sterling-gbp-plunges-against-the-dollar-usd-and-euro-eur-as-bank-hikes
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Currency weakness in sterling against the dollar supports the dollar index, a modest headwind for dollar-priced commodities.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2023-05-28 | [The Dollar Is Still King in Europe, and It’s Swaying Interest Rates - WSJ](https://feedsoft.ai/events/36156-the-dollar-is-still-king-in-europe-and-it-s-swaying-interest-rates-wsj.md) | -0.5% | -1.4% |
| DXY | 2017-11-02 | [Pound Could Remain Volatile Against Dollar and Euro as New Interest Rate Consensus Develops](https://feedsoft.ai/events/68240-pound-could-remain-volatile-against-dollar-and-euro-as-new-interest-rate.md) | -0.1% | -1.5% |
| DXY | 2022-10-27 | [Euro falls against the dollar after ECB rate hike, U.S. data](https://feedsoft.ai/events/39360-euro-falls-against-the-dollar-after-ecb-rate-hike-u-s-data.md) | +0.7% | -2.5% |
| DXY | 2018-03-29 | [Stronger Dollar To Pound Sterling Exchange Rate As US Growth Impresses Investors](https://feedsoft.ai/events/66236-stronger-dollar-to-pound-sterling-exchange-rate-as-us-growth-impresses-investors.md) | +0.1% | +1.6% |
| EURUSD | 2021-09-28 | [Surging Inflation Fears Stoke Pound Sterling Advance against the Euro and Dollar](https://feedsoft.ai/events/45311-surging-inflation-fears-stoke-pound-sterling-advance-against-the-euro-and-dollar.md) | -0.7% | -1.0% |
| EURUSD | 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) | +0.4% | +1.7% |
| EURUSD | 2023-05-28 | [The Dollar Is Still King in Europe, and It’s Swaying Interest Rates - WSJ](https://feedsoft.ai/events/36156-the-dollar-is-still-king-in-europe-and-it-s-swaying-interest-rates-wsj.md) | +0.1% | +2.3% |

## Sources

- cityam.com: https://www.cityam.com/275046-pound-plunges-bank-hikes-interest-rates/

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