Currencies
Pound Rises to Strongest in Over Two Years Against the US Dollar
- Investors bet Fed will cut more aggressively than BOE
- Sterling is the best-performing major currency this year
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Sterling climbed to the strongest level in over two years, adding to a world-beating rally fueled by bets the Bank of England will ease monetary policy less than the Federal Reserve.
The pound on Friday rose more than 1% to $1.3230, the highest level since March 2022. The latest gains came amid broad dollar weakness after Federal Reserve Chair Jerome Powell said the time has come for the US central bank to cut its key rate, bolstering the view that the outlook for the two economies would continue to diverge.