Dollar Falls to 2-month Low, Sterling Hits 15-month High After Jobs Data

Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colo., on Nov. 3, 2009. Rick Wilking/Reuters

LONDON—The dollar weakened to a two-month low on Tuesday after Federal Reserve officials signalled that the central bank was nearing the end of its tightening cycle, while the pound hit a 15-month high after pay growth exceeded expectations.

Several Fed officials said on Monday the central bank would likely need to raise interest rates further to bring down inflation but the end to its current monetary policy tightening cycle was getting close.