Pound hits 10-month high against US dollar


The pound has climbed to a 10-month high against the US dollar, as signs build that inflationary pressures in America are easing.

Sterling hit $1.2546 this morning, the highest since last June, as the dollar dropped on the foreign exchange markets on hopes that the US Federal Reserve could stop lifting interest rates soon.

The pound has staged quite a recovery since its nadir last September, when it fell to a record low against the dollar after the mini-budget fiasco. It picked up as Jeremy Hunt tore up much of his predecessor, Kwasi Kwarteng’s, plans for unfunded tax cuts last autumn.