The British pound slumped to its lowest level in nearly 7 months against the dollar as hawkish Fed underpinned gains for the greenback overseas. The dollar index continues to add strength near a three month high as Fed Chair Jerome Powell hinted that it may be the central bank's last reduction for the year, citing the risk of making additional moves without a more robust picture of the economy. DXY quoted at 99.71 today. GBP/USD pair is quoting at $1.31, down 0.1% on the day. The British currency is staying cautiously lower amid dovish expectations from BoE due to slower-than-projected United Kingdom (UK) Consumer Price Index growth seen in September and signs of moderating labor demand reflected by the employment data for the three months ending August. The Bank of England's (BoE) interest rate policy will be announced on Thursday. Meanwhile, data today showed the seasonally adjusted S&P Global UK Manufacturing Purchasing Managers' Index rose to a 12-month high of 49.7 in October, up from 46.2 in September. Manufacturing output expanded for the first time in a year during October, as companies depleted backlogs of work, increased stocks and, in some cases, were boosted by a restarting of production at JLR following a recent cyberattack. On the NSE, GBP/INR futures are trading almost flat at 116.77.

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