Pound rallies as Trump’s tariffs hit the greenback: Sterling surges above $1.30 for the primary time in six months
The British pound has risen to its strongest level against the dollar in six months after Donald Trump confirmed sweeping import levies on countries across the world.
Sterling was up by 0.7 per cent this morning to $1.3097 after the President slapped a 10 per cent tariff on US imports of UK goods and 25 per cent on all foreign cars.
The pound is now trading above $1.30 for the first time since last October, having been at $1.298 before Mr Trump’s announcement at the White House last night.
Meanwhile the pound was trading roughly level against the euro at €1.1964. Against the dollar, the euro rose nearly 1 per cent to a two-week high of $1.0950.
Mr Trump’s measures have sent shockwaves through markets, with global stocks sinking and investors scrambling to the safety of bonds as well as gold.
The British pound was up by 0.7% to $1.3097 today – its highest level since October last year
President Donald Trump announces tariffs in the Rose Garden of the White House yesterday
Traders work on the floor of the New York Stock Exchange before the Closing Bell yesterday
Other countries and regions were hit by tougher tariffs, including the European Union which is facing a 20 per cent levy, Japan 24 per cent and China 34 per cent.
As for other global currencies, the risk-sensitive Australian dollar fell 0.49 per cent to $0.62685, while the New Zealand dollar slipped 0.2 per cent to $0.5733.
The yen strengthened to a three-week high against the dollar and was last up 1.3 per cent at 147.39 per dollar, while the Swiss franc touched its strongest level in four months at 0.8754 per dollar.
Benchmark ten-year Treasury yields tumbled 15 basis points to a five-month low of 4.04 per cent as investors braced for slower US growth, while interest rate futures in America priced in a higher chance of interest rate cuts in the months ahead.
JAPAN – A woman walks past a display showing the Nikkei Stock Average in Tokyo today
INDIA – A display on the facade of the Bombay Stock Exchange building in Mumbai today
CHINA – A man walks past a screen showing stock prices at a securities office in Beijing today
For Asian currencies, China’s onshore yuan sliding to its weakest level against the dollar since February 13. China’s offshore yuan also hit a two-month low.
Malaysia’s ringgit, South Korea’s won and the Thai baht all slid against the dollar, while the Vietnamese dong slumped to a record low.
The dollar index, which measures the US currency against six other units, fell to 102.98, its lowest since mid-October. The index is down more than 4 per cent this year.
The index compares the dollar against the euro, Japanese yen, Pound sterling, Canadian dollar, Swedish krona and Swiss franc with various different weightings.
