LONDON, Nov 27 Reuters The pound gained for a third day on Monday and was on track for its largest monthly rise versus the dollar in a year, largely a result of investors ditching the greenback ahead of what many believe will be a rapid shift to U.S. rate cuts in 2024.

Separately, in a potential longerterm boost for sterling, Prime Minister Rishi Sunak announced a raft of foreign investments in Britain ahead of a gathering of business leaders.

Sterling has gained nearly 4 versus the dollar this month, but has fared less well against the euro or the Chinese yuan, with declines in November of 0.3 and 3.6, respectively.

On a tradeweighted basis, the pound is heading for its first monthly gain since June .

Money market traders expect the Bank of England to keep interests higher for longer than either the Federal Reserve or the European Central Bank in 2024, which has helped give sterling an edge recently.

Less than two weeks ago, traders had priced in around 70 basis points in UK rate cuts next year. Following a number of data releases including business activity and inflation, that expectation has been brought back to around 60 bps.

The developments should help to provide more support for the pound in the nearterm in so far as shortterm yield spreads are moving back in favour of the UK. However, we remain sceptical that the recent upward adjustment for UK rates will be sustained, MUFG strategist Lee Hardman said.

Sterling was last up 0.15 at 1.2624, nearing…