Pound hits 26-year high as dollar plummets

clock •

The pound hit its highest level for 26 years earlier today after concerns surrounding the US sub-prime housing market saw the dollar plummet to a 12-year low.

Sterling leapt to $2.05 fuelled by renewed expectations of higher UK interest rates after stronger than expected inflation data emerged yesterday. It has reinforced predictions the Bank of England would increase interest rates to 6% as early as next month, and came as the Bank prepared to release the minutes of the latest meeting held by its rate-setting Monetary Policy Committee. The euro also benefited from renewed weakness in the dollar, rising as high as $1.3823 on EBS, the electronic currency trading platform. Ian Kernohan, economist at RLAM, says he expects the economy to slow ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

China's historic move away from coal shows why investors need to keep digging

China's historic move away from coal shows why investors need to keep digging

'A key challenge for investors is to identify the pockets of genuine innovation'

Xin-Yao Ng
clock 19 October 2026 • 4 min read
Investors yet to stuff ISA allowances as government plays down spectacle despite 'tough' Budget

Investors yet to stuff ISA allowances as government plays down spectacle despite 'tough' Budget

Platform activity stable

Jack Roach
clock 19 October 2026 • 4 min read
D2C platforms urged to improve 'daunting' onboarding process for new investors

D2C platforms urged to improve 'daunting' onboarding process for new investors

Monzo and Revolut top ease rankings

Patrick Brusnahan
clock 15 October 2026 • 2 min read