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LONDON (Reuters) – The British pound has been the best-performing Group of 10 currency this year against the U.S. dollar and could appreciate further in the next 12 months, UBS said. Analysts at UBS said in a note that the pair’s valuation remains attractive, and the recent more decisive steps taken by the Bank of England to curb inflation should support sterling against the dollar. In June, the BoE stepped up its pace of rate hikes while the Fed paused, they said. While the Fed could finally raise rates in July, a rate cut could come in late 2023 or early 2024, they said. Lower U.S. interest rates will help pave the way for future dollar weakness. UBS expects GBP/USD to rise to 1.38 from current levels by June 2024.