23.02.202608:57:55UTC+00Sterling Climbs Above $1.35 on Softer Dollar

Sterling extended its climb beyond $1.35, rebounding from last week’s one-month lows as the US dollar weakened amid renewed uncertainty over US trade policy. Over the weekend, US President Donald Trump announced plans to raise a temporary global tariff to 15% from 10%, after the Supreme Court blocked his broader tariff package on Friday. However, US Trade Representative Jamieson Greer stressed that existing trade agreements remain in force, including last year’s deal with UK Prime Minister Keir Starmer, easing concerns that British exports would be hit by the higher 15% rate. The pound also found support in a series of strong domestic data releases. The latest S&P Global UK PMI showed private-sector activity expanding in February at its fastest pace since April 2024, while January retail sales beat expectations. At the same time, public sector net borrowing posted a £30.4 billion surplus, the largest monthly surplus on record.