Pound soars, exports up
STERLING soared to its highest level against the dollar since the Brexit vote last night as investors bet the UK economy was strong enough to withstand a rise in interest rates.
The pound traded above $1.36 for the first time since June 24 last year – the day after Britain voted to leave the European Union.
It also reached a two-month high against the euro of almost €1.14 as the Bank of England fuelled speculation it could raise interest rates to 0.5 per cent as soon as November.
Sterling has gained 3 per cent against the dollar this week and 13 per cent since January – although it is still down 9 per cent since the referendum.
The surge came as statistics revealed the volume of goods sold overseas by UK manufacturers rose by 9 per cent between July last year and June this year.