2017.11.0203:55:00UTC+00Sterling Firms as Dollar Slips; BOE in Focus

The sterling strengthened early on Thursday as investors prepared for what is widely anticipated to be the Bank of England's first hike in over ten years.

The pound rose 0.2 percent to $1.3282 ahead of the decision.

The BoE is expected to hike rates later in the session to ram down inflation, which has accelerated to a five-year peak despite weakening economic growth.

The dollar index, which tracks the U.S. currency against a basket of six major peers, fell 0.3 percent to 94.533.

The greenback dropped 0.3 percent versus the yen to 113.89, pulling back from a more than three-month peak of 114.45 yen notched last Friday.

The White House plans to nominate current Fed Governor Jerome Powell as the next chair when Janet Yellen's term expires in February, according to a source familiar with the matter. Powell's nomination, which would need to be confirmed by the Senate, is expected later on Thursday.

Growing expectations that U.S. President Donald Trump will pick Powell, who is considered as more dovish on interest rates, has kept the dollar on the backfoot this week.

The euro climbed 0.3 percent to $1.1655, near its three-month low of $1.1574 reached on Friday, a day following the European Central Bank's announcement that it will extend its bond purchases into September 2018.