British Pound Leads European Currency Rebound
- Sterling rises to highest in 10 months on UK economic optimism
- European economic resilience paves way for more rate rises
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The pound rose to the highest since June against the dollar as traders bet resilience in the UK economy may give the Bank of England room to keep lifting interest rates.
Sterling rose as much as 0.9% to $1.2521 on Tuesday, taking its year-to-date advance past 3%, the best among the Group-of-10 currencies. The move came alongside broader weakness in the dollar in the face of evidence that the Federal Reserve’s tightening cycle is beginning to bite in the US economy. The euro also climbed and traded just below its highest this year.