Sterling has been the best performing major developed market currency over the past few months, appreciating to more than 1.64 dollars, compared to an exchange rate of 1.50 during the summer. The strengthening has been driven by a rise in relative interest rate expectations, as the UK economic recovery has gathered pace while the Fed has been talking down the prospect of monetary tightening in the US.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.