Pound soars and ex­ports rise as Brexit boosts UK busi­ness

Scottish Daily Mail - - TERROR ON THE TUBE -

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.

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