Pound Hits Post-Brexit High at 86.4 as Traders Price In UK Rate Rise
Updated
Updated · bbc.co.uk · Nov 4
Pound Hits Post-Brexit High at 86.4 as Traders Price In UK Rate Rise
3 articles · Updated · bbc.co.uk · Nov 4
Summary
Sterling’s trade-weighted index reached 86.4 this week—its joint highest level since the June 2016 Brexit referendum—with the Bank of England due to confirm the reading on Thursday.
A first UK rate increase in three years is widely expected this week, while traders have also cited relative political stability, stronger-than-forecast growth and improving ties with the EU.
Against major peers, the pound was up 0.28% at $1.3434 late Wednesday and was flat at €1.1996, extending a recent rally versus both the dollar and the euro.
The rebound marks a sharp reversal from sterling’s post-referendum slide and later lows during the Brexit process, the Covid pandemic and the 2022 mini-Budget.
A stronger pound could help curb inflation and lift consumers’ import and travel buying power, though rising energy and fuel costs are already weighing on confidence.