Sterling hits fresh five-month high against softer dollar

The dollar is dipping as traders increase bets that the U.S. Federal Reserve will slash interest rates in 2024 amid moderating inflation. Inflation is also slowing in the UK, with data earlier in December showing a surprise drop in British CPI for November. "The Bank of England is showing more wariness than the Fed about the trajectory for inflation, so any sign that interest rates might stay higher for longer, in the UK, aren't read well for the housing market," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.