Sterling has recorded its best quarterly performance in nearly three years during a period when transition arrangements were agreed for the UK's departure from the European Union and amid growing expectations the Bank of England could hike rates faster than previously anticipated.
Over the last three months sterling has risen 3.8% to $1.402 against the dollar, the biggest quarterly jump since mid-2015 and its highest level since the UK voted to leave the EU in June 2016. Against the euro the pound was up 1.2% to €1.138. Sterling's performance has been driven by a number of factors. It was given a boost after Michel Barnier and David Davis announced both parties had agreed a large part of the terms of a Brexit transition deal after the UK leaves the bloc on 29 March 2019, climbing to $1.41 and 87.5 pence per euro. The proposal will enable a transition period of ...
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