The British pound continued to ride its gains, which it started a few days ago, to record its all time high in more than five months, namely since last June, when it breached the $1.23 level during Friday morning trading, according to what was monitored by Al Arabiya.net.
The British currency plunged less than two months ago to its lowest level in its history when the pound hit $1.03 in about two months, influenced by the mini-budget announced by then Treasury Secretary Kwasi Quarting, who resigned after a few days, and then overthrown Later, with Prime Minister Liz Terrace.
The British pound rose to its highest level against the dollar since June at $1.23 on Friday morning, on Friday morning, on a weak US dollar and expectations of a slowdown in interest rate hikes.
Economists say the appreciation of the British pound’s exchange rate will help somewhat in the face of the current cost-of-living crisis, because it will make imported goods cheaper.
Simon French, chief economist and head of research at Panmure Gordon, said: “A pound at this level will limit inflation in 2023, versus the counterfactual of a weakening pound in October”.
“It may be difficult to quantify in headline data, but the improvement in trade rates has a significant impact given Britain’s large trade deficit. This brings some relief to consumers,” he added in remarks reported by the media premises in London.
After September’s financial market turmoil, international investors got a better view of the British economy last month, helped by Chancellor Jeremy Hunt’s autumn statement. The pound rose from $1.1469 to $1.23 during this period.
Many observers also expect a slowdown in US interest rate hikes, which will lead them to move away from the dollar towards riskier assets.
Since hitting a 20-year high in late September, the dollar has lost about 8% of its value against its major counterparts, after falling 1.5% this week alone.
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