POUND CLIMBS TO POST-BREXIT HIGH

STERLING has hit its highest level against the US dollar since the vote to leave the European Union, amid rising confidence in the outlook for Brexit Britain.

The pound traded above $1.38 for the first time since June 24, 2016 – the day after the referendum when it fell sharply as the result stunned investors around the world.

The UK currency has gained around 15pc against the greenback since hitting a low of around $1.20 early last year and is up 2pc so far in 2018.

Sterling has been driven higher by steady economic growth as well as progress on Brexit negotiations with the EU.

After slumping in 2016, the pound enjoyed its best performance for a decade last year, rising as the economy fared better than many feared and unemployment fell to a 42-year low.

The pound has also been boosted by the first rise in UK interest rates for more than a decade. The Bank of England raised rates from 0.25pc to 0.5pc in November and further increases are expected in the coming years as it battles to bring inflation back under control.

Official figures published today, however, will show how far above the 2pc target inflation was in December having reached 3.1pc in November.