Commodity currencies at multi-month highs, pound firm on BoE hike bets

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In this photo illustration, US 100 dollar bills seen on an American flag.

Igor Golovniov | SOPA Images | LightRocket | Getty Images

Commodity currencies stood near multi-month highs on Thursday on strong raw material prices while the improved risk mood saw the U.S. dollar losing earlier momentum built from expectations the Federal Reserve would tighten monetary policy.

Sterling was also riding high on firming perceptions the Bank of England (BoE) will raise interest rates as soon as next month to curb inflation, despite softer-than-expected UK price data on Wednesday.

“It looks almost certain that the BoE will raise interest rates in November, perhaps again in December, as inflation could get out of control otherwise given a severe labour shortage,” said Yukio Ishizuki, senior strategist at Daiwa Securities.

“And globally we are likely to see rate hikes to curb inflation in many countries, which means the U.S. dollar is standing out less than before, in…

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