Sterling Soars Amidst Tariff Uncertainty
The pound reached a two-week high against the dollar due to ambiguity over U.S. tariff plans. Despite initial drops, uncertainty surrounding Trump's tariff policies weakened the dollar, causing the pound to gain. Investors remain concerned about Britain's economic prospects, with potential Bank of England rate cuts on the horizon.
The pound's ascent continued for a third day, achieving a two-week peak against the dollar this Wednesday, fueled by ambiguity regarding U.S. President Donald Trump's tariff strategies, which have constrained the greenback.
Initially, sterling dipped over 0.3% during early trading following reports that Britain's December borrowing surpassed expectations. Obstacles in the Trump administration's tariff agenda have since pressured the U.S. dollar, boosting the pound's value by 1.6% this week.
Although Trump refrained from imposing immediate tariffs, he considers future tariffs on imports from Canada, Mexico, and China. Investor concerns linger over Britain's economic outlook, potentially leading to more Bank of England rate cuts this year.
(With inputs from agencies.)
ALSO READ
EU leader says Trump's latest tariffs are a major blow to the world economy and will hurt vulnerable people the most, reports AP.
Spain Prepared to Shield Economy from U.S. Tariffs
Israel Scrambles to Shield Economy from U.S. Tariffs
Global Markets Tumble as Trump's Tariffs Shake Economy
Belgium's Economy Faces Twin Challenge of Tariffs and Defense Spending
Google News