The British pound experienced a minor decrease against a stronger dollar on Thursday. Despite this, it maintained proximity to four-month highs. The steadiness is attributed to the UK’s cautious approach amidst U.S. trade tensions.
On Thursday, the pound depreciated by 0.15%, settling at $1.2941. Earlier, it reached $1.299, marking its highest since November 7. ‘It’s primarily a dollar narrative at the moment,’ remarked Francesco Pesole, an FX strategist from ING, referencing the sterling’s slight dip.
Experts point to Britain’s balanced trade position with the U.S. as a stabilizing influence for the pound. Unlike the EU and Canada, which retaliated against U.S. President Donald Trump’s tariffs on steel and aluminum imports, the UK adopted a more measured response.
(With inputs from agencies.)