Dubai: Pound edged higher on Wednesday after hitting its lowest level in 20 months as UK prime minister Theresa May faced a possible no-confidence motion.

The pound rose half a per cent at 1.2543 against the US dollar. “The pound could drop again as Theresa May is about to face a leadership challenge, according to the latest news,” Konstantinos Anthis, Head of Research at ADSS said.

Meanwhile, the dollar rose for a third consecutive day on Wednesday as US Treasury yields rose before a Federal Reserve meeting where it is widely expected to raise interest rates for the fourth time this year.