Pound clocks up its biggest monthly gain against the US dollar for more than a decade
The pound has clocked up its biggest monthly gain against the dollar for more than a decade.
Sterling jumped as high as $1.3169 yesterday having started the month at $1.24 – a rise of more than 6 per cent.
That was the best performance against the greenback since May 2009 when the pound recovered some of the ground it lost during the last financial crisis.
Upper hand: The rally in sterling came as the Government’s borrowing costs hit record lows
The rally in sterling came as the Government’s borrowing costs hit record lows.
Ten-year gilt yields fell to just 0.07 per cent and five-year gilt yields fell deeper into negative territory to minus 0.153 per cent – meaning you pay the Government to lend it money.
The dollar has suffered recently amid criticism over President Trump’s handling of the pandemic, doubts about the chances of a strong economic recovery and his suggestion this week that November’s presidential election should be delayed.