Pound tops $1.23 for the first time in five months despite latest figures showing Britain entering recession
The pound stormed to its highest level against the dollar in over five months despite gloomy economic figures stoking recession fears.
Sterling climbed as much as two-and-a-half cents to $1.2309, its strongest since June 27, after US Federal Reserve chairman Jerome Powell said the pace of interest rate hikes in America could slow soon.
Against the euro, it added more than a cent to hit €1.1697.
On the rise: Sterling climbed as much as two-and-a-half cents to $1.2309, its strongest since June 27
The pound slumped to a record low of less than $1.04 in the wake of Kwasi Kwarteng’s mini-Budget.
Figures yesterday which added to evidence that the UK is entering a downturn failed to trip up sterling.
The manufacturing sector shrank again last month, for the fourth time in a row, though the decline was not quite as bad as October’s.
UK factories were hit by job losses, low confidence from clients, limp consumer spending, weak exports and high energy prices.
But the rate of inflation for components and ingredients eased, chiming with a Bank of England survey that said firms last month raised prices at the lowest rate since April.
US and eurozone manufacturers have also been struggling.