The British pound exhibited mixed performance on Friday, as traders maneuvered through turbulent global trade tensions. The currency saw a 1% increase against the U.S. dollar, standing at $1.30950, while experiencing a 0.5% dip against the euro, priced at 0.8675 by mid-morning GMT.
The movement of the pound was closely tied to heavy selling of the U.S. dollar, which led to a widespread decrease of the greenback’s value against multiple currencies. Investors sought refuge in stable currencies such as the Swiss franc and euro, as confidence in the U.S. economy waned due to escalating trade disputes.
Meanwhile, growth data from the UK showed a promising expansion in February, although the pound showed limited reaction due to the ongoing focus on trade tariffs, especially those impacting the U.S. and China. FX strategist Francesco Pesole noted sterling’s acute sensitivity to market risks and bond market instability, highlighting the currency’s unique position in the evolving economic landscape.
(With inputs from agencies.)
