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Pound rises after BoE keeps rates unchanged, USD slides on yen move

GBP/USD was last around 1.3430, up 0.4%, while the US Dollar Index fell over 0.6% to a 30-day low as USD/JPY tumbled by more than 400 pips.

Reported · Written up by our desk · Major Pairs

The pound rose versus the US dollar after the Bank of England held Bank Rate steady in a 6-3 vote, a split that signaled a more hawkish tone than some investors expected. FXStreet said GBP/USD traded near 1.3430, up 0.4%, as UK policymakers also highlighted upside risks to inflation.

FXStreet attributed broader dollar weakness to suspected intervention linked to the Japanese yen, which pushed USD/JPY lower by more than 400 pips and helped drag the US Dollar Index down over 0.6% to a 30-day low. The session remained volatile, according to the report.

In the US data backdrop, FXStreet noted the economy grew at 1.5% in Q2 2026, below an estimated 2.1%, while Core PCE rose as expected, increasing 3.7% in June versus 4.1% in May. The report also said the outlook for the core PCE dip may be limited after hostilities in the Middle East resumed.

The BoE kept rates at 3.75% and said there was no evidence of second-round effects, while also indicating it stands ready to adjust policy as the outlook evolves. FXStreet added that the next US catalyst on the docket is the University of Michigan Consumer Sentiment release.

Latest closeUSD/JPY 163.42 ▼0.2%|GBP/USD 1.337 ▲0.6%|Dollar index 100.80 ▼0.6%

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