Pound Rallies Amid Tariff Talks Uncertainty

The pound rose against the dollar as uncertainty over U.S. tariff policies affected currency markets. President Trump's comments on potential trade deals with China influenced investor sentiment, leading to a weaker dollar. Market analysts suggest tariffs may be used as negotiation tools, causing volatility.

The pound saw a notable rally against the dollar on Friday, poised to end the week on a high note after a period of losses. This rise came amid uncertainty surrounding U.S. President Donald Trump's tariff policies, which have weakened the dollar.

Sterling increased by 0.6% against the dollar, reaching $1.2344, its highest mark since January 9. The currency looked set to conclude the week with a 2.1% gain, reflecting similar upward trends in other major currencies against the greenback.

In a recent interview, President Trump expressed optimism about negotiating a trade deal with China and suggested a preference to avoid using tariffs, calling them a "tremendous power". Despite this, the ongoing ambiguity regarding tariff policies has fueled market volatility.

(With inputs from agencies.)