News: FOREX-Pound rebounds as traders turn to BoE response

	  Profit taking pushes dollar from 20-year peak 

	  Sterling up almost 5% off Monday's low 

	  Traders eye BoE economist talk at 1100 GMT 

Sterling bounced on Tuesday, but was running mostly on hope, profit taking and soaring British yields, leaving traders unnerved about the broader fallout from its record dive.

As the dollar eased, the pound GBP=D3 rose 1% in Asia to $1.0805 and is up nearly 5% from Monday's low at $1.0327. The kiwi NZD=D3 also rose 1%, its first gain in seven sessions, the euro EUR=EBS rose 0.5% and the Aussie AUD=D3 rose 0.7%.

Little has changed fundamentally, however, since sterling's plunge was triggered by concern at Britain's gambit of relying on unfunded tax cuts to spur growth - apart for an implosion in gilts that has sent short-term yields up 100 bps in two days.

The Bank of England has made a fairly anodyne promise to monitor markets and hike if necessary, and attention will be on the appearance of the central bank's chief economist, Huw Pill, at a panel event at 1100 GMT.

Sterling's climb has pared most of Monday's losses, but Qi Gao, currency strategist at Scotiabank in Singapore said it might be "short lived." It is still down 20% this year against the backdrop of a stronger dollar.

"More BoE rate hikes could only briefly boost the pound but not on a sustainable basis," said Gao.

The greenback has climbed as expectations solidify for U.S. interest rates staying higher for longer, and as sudden moves like the pound's rattle traders. As the pound fell on Monday, the dollar surged to new highs on the euro and many more.

The U.S. dollar index =USD , which measures the greenback against a basket of six majors, hit a 20-year high of 114.58 and was off that at 113.51 on Tuesday.

"Everyone's got this hope that the dollar is peaking and peaking and peaking, but it's just been far too premature," said Paul Mackel, global head of FX research at HSBC in Hong Kong.

"The Fed is firmly hawkish and global growth is weakening, and you put those forces together alongside higher elements of risk aversion - it's all pointing to a strong dollar if not a strengthening dollar."

Japan intervened to support the battered yen for the first time in decades last week, which has been enough to stave off steeper losses for the yen, for now.

The yen JPY=EBS last traded at 144.41 per dollar, steady even as the Bank of Japan poured more cash into unscheduled bond buying to keep a lid on yields.

The euro EUR=EBS made a two-decade low of $0.9528 and is weighed down by an energy crisis and new risks of war in Ukraine escalating. It was last more than a cent above that at $0.9651.

The Aussie AUD=D3 and kiwi NZD=D3 hit 2-1/2 year lows on Monday and were due for a rebound, with the Aussie up 0.6% to $0.6500 and the kiwi up 1.2% to $0.5703.

China's yuan CNY=CFXS also hit a 2-1/2 year low on Monday and was broadly steady at 7.1589 on Tuesday.

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	Currency bid prices at 0604 GMT 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS																	   

							  $0.9658		 $0.9609	+0.52%		  +0.00%	  +0.9658	 +0.9584 
																								 
 Dollar/Yen		JPY=EBS																	   

							  144.3250		144.7000   -0.23%		  +0.00%	  +144.7050   +144.3600 
																								 
 Euro/Yen		 
				  S>		  139.39		  139.07	 +0.23%		  +0.00%	  +139.4400   +138.7100 
																								 
 Dollar/Swiss	  CHF=EBS																	   

							  0.9889		  0.9926	 -0.35%		  +0.00%	  +0.9941	 +0.9892 
																								 
 Sterling/Dollar   GBP=D3																		

							  1.0818		  1.0690	 +1.18%		  +0.00%	  +1.0826	 +1.0651 
																								 
 Dollar/Canadian   CAD=D3																		

							  1.3658		  1.3728	 -0.50%		  +0.00%	  +1.3741	 +1.3659 
																								 
 Aussie/Dollar	 AUD=D3																		

							  0.6502		  0.6459	 +0.65%		  +0.00%	  +0.6504	 +0.6452 
																								 
 NZ				NZD=D3																		

 Dollar/Dollar				0.5707		  0.5635	 +1.22%		  +0.00%	  +0.5707	 +0.5635 
																								 
																								 
 All spots  FX=  
Tokyo spots  AFX=  Europe spots  EFX=   Volatilities  FXVOL=   Tokyo Forex market info from BOJ  TKYFX  
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World FX rates	https://tmsnrt.rs/2RBWI5E 

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