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Sterling is the weakest major currency this month and yesterday's drop of more than 1.1% was the largest in over a year.
The looming debt ceiling may have encouraged some banks to avoid the T-bills that expire in mid-October and push more funds into the reverse repo facility, which saw record use yesterday (~$1.365 trillion).
The US dollar posted an outside up day against the Canadian dollar yesterday, trading on both sides of Monday's range and settling above its highs.