LONDON: Sterling hit its highest in more than six weeks against the dollar on Tuesday with the greenback’s continuing decline and a positive surprise from labour market data out of Britain lending support to the currency.
The pound crossed the $1.40 mark for the first time in nearly a month on Monday, rising 1% as it benefited from a broadly weakening dollar that took a hit as risk sentiment returned and volatility slumped in global markets. It extended gains to touch its highest since March 4 at $1.4009 early on Tuesday before reversing course to stand 0.3% lower against the dollar by 1505 GMT, and 0.4% lower against a strengthening euro at 86.40 pence.
Speculators’ net long position on the pound versus the dollar rebounded in the week to April 13 after slipping to its lowest since February in the previous week, CFTC data showed.
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