The pound hit fresh two-year highs against the dollar yesterday, defying the Prime Minister’s doom-laden narrative about the economy.
Sterling peaked at $1.3246 versus the dollar as it extended a rally that has pushed it to the strongest levels since March 2022.
Experts said the currency was in a ‘sweet spot’ amid robust economic growth and signs that steep rate cuts are looming in the US.
It was also about half a cent ahead against the euro at €1.1852, with the pound’s strength providing a boost to holiday makers.
Its advance has come despite downcast rhetoric from Labour.
Sterling peaked at $1.3246 yesterday versus the dollar as it extended a rally that has pushed it to the strongest levels since March 2022 (Stock photo)
Chancellor of the Exchequer Rachel Reeves (pictured) insists the party has been left with the worst economic inheritance since the Second World War
Sir Keir Starmer (pictured) joined the dismal chorus yesterday, saying ‘thing will get worse before we get better’ in his No 10 speech
Chancellor Rachel Reeves insists the party has been left with the worst economic inheritance since the Second World War – a claim greeted with derision by City experts.
Sir Keir Starmer joined the dismal chorus ysterday, saying ‘thing will get worse before we get better’ in his No 10 speech.
Labour claims it has been left with a £22billion black hole, with the Prime Minister warning ‘unpopular decisions’ will be necessary in a ‘painful’ Budget in October – hinting at tax hikes for higher earners.
The language is at odds with figures showing that the UK enjoyed the strongest economic growth among all G7 nations in the first half of this year, while inflation is near 2 per cent and unemployment is falling.
Recent Purchasing Managers’ Index data has pointed to continued growth through the summer.
