LONDON, Aug 21 Reuters The pound steadied on Wednesday near the oneyear high it touched against the dollar the previous day, with the U.S. currency under pressure from rising expectations of Federal Reserve interest rate cuts.

Sterling was little changed on Wednesday at 1.3025, having touched its highest versus the dollar since July 2023 on Tuesday at 1.3054.

The pound was also steady against the euro , with one euro trading for 85.37 pence.

A fall in the dollar has been driving currency markets in recent days, as investors increasingly bet that the Fed will cut interest rates relatively sharply this year.

U.S. bond yields slid on Tuesday as markets positioned for rate cuts, making Treasuries look less attractive and causing the dollar index to sag to its lowest level this year.

The fact that sterling has moved against the U.S. dollar this week is a function largely of the dollar weakness, said Jane Foley, head of FX strategy at Rabobank.

Yet Foley said the pound remains the best performing G10 currency this year up about 2.3 against the dollar and has benefited from the stability of a new government as well as betterthanexpected economic growth.

Data last week showed Britain39;s economy recorded a second quarter of strong growth as it recovered from last year39;s shallow recession.

Investors on Wednesday were waiting for revisions to U.S. labour market data that could cause swings in global markets.

The Bureau of Labor Statistics will release revised figures…