British pound hits post-Brexit high of US$1.40

London

STERLING briefly popped above US$1.40 (S$1.84) on Tuesday, extending a rally since the closing days of last year on growing investor optimism about the near-term outlook for the British currency.

Protracted dollar weakness and optimism that Britain will reach a favourable divorce deal with the European Union has powered a 3.5 per cent rally in the British pound since the last week of December. "Sterling is benefiting from the broad dollar weakness story and the recent data has been mildly supportive," said Thomas Flury, head of FX Strategies, UBS Wealth Management, Chief Investment Office.