Sterling rose against a weakening dollar after the Federal Reserve cut interest rates by 50 basis points, with investors awaiting the outcome of the Bank of England policy meeting on Thursday expected to keep borrowing costs on hold.

The pound was at to its highest level in two-and-a-half years after the Bank of England left its key interest rate unchanged, taking a more cautious approach than the Federal Reserve. The pound climbed 0.

The Pound Sterling surges above 1.3250 against the US Dollar following the Fed’s large rate cut and expectations of further policy easing. Investors focus on the BoE policy meeting, with markets expecting the UK central bank to leave interest rates unchanged at 5%.