In European trading on Tuesday (Oct 18), / retreated to 1.1341, down 0.13%.
Has pushed back the sale of ¡ê838bn of gilts it plans to buy from October 6 to the end of the month.
It is now expected to bow to investor pressure and further halt sales until markets become calmer.
The Bank of England may delay the sale of billions of pounds of government bonds in an attempt to promote further stability in the gilt market following the failure of the UK’s “mini” budget.
Senior boe officials have come to this view after judging the gilt market to be “very depressed” in recent weeks, a view supported by the Bank’s Financial policy committee.
Investors had warned that the Bank’s plan to start selling bonds from its portfolio at the end of this month could destabilise markets.
The GBP/USD level is now likely to protect the immediate downside until around 1.1200 and Friday’s low of 1.1100.
