1200 GMT - The dollar has scope to rise further, particularly against sterling, after the Federal Reserve raised interest rates and signalled further tightening last week, HSBC's Daragh Maher says in a note. "With Fed credibility on an upswing, we believe the FX market will increasingly look to other currency vulnerabilities beyond the U.S." HSBC expects further dollar gains against sterling, which looks exposed to U.K fiscal risks ahead of October's budget and the potential for the Bank of England to disappoint market bets for rate rises, he says. Another challenge is weak U.K. labor demand ahead of another possible real income squeeze if energy prices remain elevated, he says. Sterling falls to an eight-week low of $1.3271, according to LSEG.
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