A weak aussie made hesitant gains against the pound yesterday following a dovish report from the BoE

Sterling dropped back half a cent in trading yesterday to hover marginally above 1.80 against the aussie as investors picked up on notes from the latest BoE policy meeting.

• The minutes reiterated the possibility of further reducing the base interest rate in order to ease credit conditions, a policy that many thought was no longer in question.
  
• However, the pound did not drop as sharply as it did elsewhere with demand for the aussie also under pressure as US equities traded in the red, dulling risk appetite.
  
• Analysts also noted that the investors remained cautious towards the Australian dollar after the RBA expressed hesitation over a further rate rise this year.
  
• The pound has recouped its losses this morning, climbing back toward 1.89. Analysts have cited the fact that investors’ are looking to lock in profits as year-end approaches following a long rally which carried the aussie to a 15-month high against the US dollar.