Sterling is set to hold steady against the dollar in the coming year as despite high inflation a tepid economic recovery gives the Bank of England little room to raise interest rates, a Reuters poll found on Thursday.
The survey of almost 60 foreign exchange strategists, taken over the past week, predicted the pound would be trading at $1.66 in a month and $1.64 in a year's time, little changed from where it was earlier on Thursday.
The median one-month forecast was revised up from $1.61 in an April poll as strategists grew more convinced the BoE will be forced to act - if not until later this year - while the US Federal Reserve holds fire until 2012.