After a shaky 2022, the pound is in for another tough year

[LONDON] How the British pound performs in the new year, after enduring a poor showing in 2022, will largely hinge on renewed international investor confidence in the UK.

In the last couple of months, Prime Minister Rishi Sunak and Chancellor of the Exchequer Jeremy Hunt have steadied the economic and financial ship since former premier Liz Truss’ disastrous October mini-Budget precipitated a financial crisis.

From its October low of 1.03 against the US dollar, the pound has rallied by about 17 per cent to 1.21 as at Tuesday (Dec 27) and has recovered against major currencies such as the euro, yen, Swiss franc and the Singapore dollar.