Pound Hits More Than Two-Year High, Dollar Back Under Pressure

FOREX - LONDON. The pound climbed to its strongest level against the U.S. dollar in more than two years on Tuesday and other major currencies also gained as a pause in rising oil prices helped investors reverse the previous session's shift towards the dollar.

Trade remained shaped by the prospect of upcoming U.S. rate cuts, which has pressured the dollar in recent weeks. Investors see a rate cut at the Federal Reserve's September meeting as all but certain, with debate now focused on the possibility of a 50-basis-point cut instead of 25.