Sterling gained against the dollar, marking its second consecutive weekly rise, as concerns over the UK budget eased and a revision in business activity supported the currency.
The pound has surged recently after UK finance minister Rachel Reeves’ budget was well-received by the bond market. November’s S&P Global UK Composite PMI, encompassing services and manufacturing, also saw upward revisions.
ING’s Chris Turner pointed to a sterling rally fueled by traders reversing bets against the currency. Expectations of a BoE rate cut in December and potential Federal Reserve rate cuts next week also bolstered sterling.
(With inputs from agencies.)
