The pound weakened against the dollar and euro on Wednesday, as markets continued to digest remarks from the Bank of England's chief economist that interest rate cuts could come around the middle of 2024.

The pound was last down 0.4% against the dollar at $1.2251, and off a near two-month high of $1.2428 hit Monday.

Part of those moves versus the dollar come as the greenback bounced back after recent losses, but sterling was also a touch softer against the euro, which was at 87.05 pence, and up from Monday's around three-week low of 86.5 pence.

Markets were focusing on remarks from the BoE's Chief Economist Huw Pill on Monday that pricing in financial markets - that currently points to a first rate cut to Bank Rate in August 2024 - "doesn't seem totally unreasonable."

Though governor Andrew Bailey, on Wednesday, said it was "really too early to be talking about cutting rates."

Source : Reuters