Pound Soars to 6-Month High

The British pound advanced to 1.3 per USD, marking its highest point in around six months, driven by a sharp depreciation in the US dollar. This development emerged as traders responded to the latest series of reciprocal tariffs unveiled by Donald Trump. The US plans to impose a 10% tariff on all imports, with significantly higher rates for specific nations, while UK imports will face the 10% rate. The announcement prompted a move towards safe-haven assets and a cautious approach, as investors grew increasingly apprehensive about the potential repercussions on the global economy. UK Minister Reynolds emphasized the US remains the UK’s “closest ally,” stating that the government’s strategy is to “stay calm and committed to securing this deal, which we hope will alleviate the impact of today’s announcement.”

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