The pound’s boost is in part due to UK retail sales rising and continuing unease from investors concerning US assets.
The pound’s strength has risen after experts predicted that the Bank of England will reduce interest rates just one more time this year, instead of the three cuts to interest rates previously predicted.
This is due to rising costs for gas, electricity, water, and travel, which pushed UK inflation to its highest level in 15 months in April.
With inflation higher than predicted, the Bank of England may be cautious about further cuts to interest rates.
Earlier this month it reduced interest rates from 4.5% to 4.25%.
Experts in the US believe the Federal Reserve will cut interest rates twice more this year, making the UK more appealing to investors and pushing up the value of the pound.
