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Higher US interest rates can make the US dollar more attractive to investors, strengthening it against other currencies like the British pound. A weaker pound means imports into the UK become more expensive, which can push up prices for goods you buy, from electronics to food.
Stories that explain this
US central bank expected to raise interest rates by a quarter on WednesdayRelated explainers
Global economy feels the pinch Your loan payments go up Why things cost more UK interest rates might follow Why the pound gets weaker What does a stronger Pound mean for me? Why Amazon wants pounds Why the dollar mattersThe full catalogue
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