The British pound rose 0.15% against the U.S. dollar to $1.2624 on Monday, pushing the currency toward a three-month high. This comes after UK Prime Minister Rishi Sunak announced a flurry of foreign investments into the nation ahead of a gathering of business leaders.
Since the start of the month, the pound has gained almost 4% against the greenback, however, it has faired less well against other currencies, falling 0.3% against the euro and 3.6% against the Chinese yuan. Still, the British currency remains on track to achieving its first monthly gain since June.
Part of the reason why the pound has been on an upward trend is because of investors’ bets that the Bank of England would keep interest rates higher for longer than both the Federal Reserve and the European Central Bank. BoE Governor Andrew Bailey claimed that lowering inflation to the bank’s 2% target would require “hard work”.
