Pound rises to $1.24 against the dollar
The pound has risen to its highest level since July, buoyed by markets’ hopes that a no-deal Brexit has now been prevented.
On Friday, the pound rise by one per cent to stand at $1.24 against the dollar.
According to the BBC, this rise was based on a report in The Times which stated the DUP, key allies of the Conservative government in the Commons, have shifted their Brexit position.
According to this report, they are now prepared to abide with some European rules after Brexit.
This has since been denied by the DUP.
Against the euro, the pound rise by 0.7 per cent to currently stand at €1.12.
Over the past eight days, the pound has risen by four per cent following parliament passing legislation that forces the government to seek an extension to the Brexit deadline.
Responding to this rise, Lee Hardman, the currency economist at Japanese bank MUFG, said: “It’s short term relief because it looks likely that the Brexit deadline could be extended for a short period of time.
“The Bank of England cutting interest rates now looks very unlikely. They are more likely to keep rates on hold for the rest of the year.”
Hardman also argued that the pound had been boosted by news that the economy grew faster than previously expected in the month of July.