Pound Optimistic About Brexit Talks

The pound rose against the dollar and the euro thanks to hopes that Britain and the European Union would reach a free trade agreement after the decision to extend negotiations after the previous deadline expired on Sunday.

The dollar traded near its lowest level in two and a half years against its major counterparts before the US Federal Reserve meeting that ends on Wednesday, as policymakers are expected to announce increased purchases of long-term treasury instruments to contain the rising yields.

Some analysts have warned that the sterling’s rise may not last, given that Britain and the European Union have not been repeatedly able to narrow the differences and the risk of trade and companies falling into chaos without an agreement.

The pound jumped 0.72% to $ 1.3311, its biggest daily gain since December 1. Against the euro, the British currency rose 0.53% to 91.10 pence. The euro rose 0.21% to $ 1.2133.

The US currency was little changed against its Japanese counterpart, recording 104.04 yen per dollar. The dollar index scored 90.775 against a basket of six major currencies, approaching its lowest level in two and a half years.