The pound rose to its highest levels against the dollar for a month as the UK’s recovery from the Covid-19 downturn continues.
Sterling was up 1.1 per cent at $1.39 as of 9:00pm, the highest it has traded against the greenback since mid-March.
Against the Euro, it was 0.7 per cent higher at €0.86.
The climb come ahead of week of data that will give analysts and traders a good sense of how the UK economy’s recovery from the pandemic is coming along.
Sterling got a helping hand from a sudden plunge in the dollar, as Connor Campbell of Spreadex explained:
“The greenback is having a minor tantrum over the Federal Reserve’s insistence that rising inflation will only be temporary, and therefore that the central bank won’t be taking any action to combat it.”
However, as a result of the increase, the FTSE 100 closed on the edge of dropping back below the 7,000 point mark.