Pound soars and exports rise as Brexit boosts UK business
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. This would reverse the rate cut to 0.25 per cent in August last year in the aftermath of the Brexit vote. Sterling has gained around 3 per cent against the dollar this week and 13 per cent since its lows in January – although it is still down 9 per cent since the referendum.
The surge came as figures showed exports soared in the year after the Brexit vote as the fall in the pound boosted business.
The Office for National Statistics said the volume of goods sold overseas by British manufacturers rose by 9 per cent between July last year and June this year. The report came just days after the ONS also revealed a record high level of employment.