Sterling ended the week just above $1.32, close to its lowest level in three months, as the US dollar gained support from rising expectations of further Federal Reserve rate hikes this year. Markets also weighed comments from Bank of England policymakers, with the US-Iran conflict and elevated energy prices raising concerns about renewed inflation. Investors are pricing in a solid probability of a 25-basis-point BoE rate increase in November. BoE Deputy Governor Sarah Breeden said higher rates could become increasingly appropriate in response to rising inflation risks, while Deputy Governor Clare Lombardelli said rates may need to rise if energy prices stay elevated. MPC member Swati Dhingra said inflation expectations were not yet a concern. UK consumer confidence, meanwhile, reached its highest level in more than two years in September.