SINGAPORELONDON, Aug 27 Reuters The pound climbed to its strongest level against the U.S. dollar in more than two years on Tuesday and other major currencies also gained as a pause in rising oil prices helped investors reverse the previous session39;s shift towards the dollar.

Trade remained shaped by the prospect of upcoming U.S. rate cuts, which has pressured the dollar in recent weeks. Investors see a rate cut at the Federal Reserve39;s September meeting as all but certain, with debate now focused on the possibility of a 50basispoint cut instead of 25.

Sterling has been one beneficiary of the weakness in the U.S. currency, and on Tuesday the pound hit its highest since March 2022, and was last up 0.25 at 1.32195.

It got support from the contrast between Friday39;s remarks by Federal Reserve Chair Jerome Powell, which underscored market pricing for meaningful U.S. rate cuts starting next month, and the more cautious comments of Bank of England Governor Andrew Bailey.

Bailey39;s comments stand to keep a wedge between US and UK rates, where money markets continue to price a shallower and slower easing cycle for the BoE, said Chris Turner, global head of markets at ING, in a note to clients.

It looks like we39;ll have to revise our mediumterm sterling profile higher, he said.

The euro was up a whisker on the dollar at 1.1166, just off Monday39;s 13month top.

After a strong rally since early August, it looks like eurodollar could be due some consolidation, Turner…