Pound SOARS against Dollar and Euro

The pound has reached a four-month high against the dollar this week.

Hopes that Chinese lockdowns will begin to lift have made American interest rates slow.

The lockdowns in China caused a significantly lower amount of economic activity in the country and disrupted supply chains.

On Thursday £1 would buy close to $1.23.

The pound was up 1.62% against the dollar at 1.225 and was 0.68% higher against the euro at 1.166 at the close.

The main US markets drifted on Thursday despite inflation figures showing a moderation in October.

Meanwhile, the other major European indexes were slightly higher at the close despite pulling back later in the session due to the knock-on from trading sentiment in the US.

The Dax improved 0.65% by the end of the session and the French Cac finished 0.23% higher.

The hope is that the stronger pound will help to lower inflation as importing goods becomes cheaper.

It means there has been nearly a 20 cents rise following Liz Truss and Kwasi Kwarteng’s mini-budget which caused market turmoil earlier this year.