Pound Gains to Highest This Year on Broad-Based Dollar Weakness

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The pound rallied to its strongest level this year buoyed by a broadly weaker U.S. dollar.

Sterling rose as much as 0.9% to $1.3486, pushing beyond a high touched in early September to reach the strongest since December 2019. The Bloomberg Dollar Index fell for a third day to the weakest since April 2018.

Hopes that the EU and U.K. can reach a deal as the Dec. 31 deadline nears have also contributed to the pound’s advance. The currency has rallied about 9% against the greenback since June, with traders taking cues from over four years of Brexit drama to conclude a last minute resolution is likely.

©2020 Bloomberg L.P.

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