Sterling Continues to Surge on Weaker US Dollar

The British pound has continued its upward trajectory since the start of trading on Tuesday, bolstered by a weakening US dollar, which has been further impacted by US President Donald Trump’s trade policies and recent developments in that area. Sterling/dollar rose to 1.2959, compared to the previous day’s close of 1.2876. The pair fell to a low of 1.2871 during the current trading day, versus a high of 1.2965.

The dollar index, which measures the performance of the US currency against a basket of six major currencies, fell to 103.35 points, compared to the previous day’s close of 103.84 points.

US President Donald Trump announced on Tuesday the consideration of imposing additional tariffs on US imports of steel and aluminum from Canada, at a rate of 50%, which are scheduled to take effect next Wednesday. These tariffs come as part of an escalation against the Ontario provincial government’s decision to impose a 25% tariff on its electricity imports from the United States.

The dollar index rose to its highest point in Tuesday’s trading at 103.92 points, compared to its lowest point of 103.33 points.