A week after hitting an all-time low against the US unit, sterling rose 1.1 percent for the fifth day in a row to $1.1301 by 1530 GMT.
A week after hitting an all-time low against the US unit, sterling rose 1.1 percent for the fifth day in a row to $1.1301 by 1530 GMT.
The pound jumped one percent against the dollar on Monday after the British government dropped the dispute tax cut And the data showed weak growth in US manufacturing.
A week after hitting an all-time low against the US unit, sterling was up 1.1 percent at $1.1301 around 1530 GMT, rising for the fifth day in a row against the dollar since its September 26 nadir of $1.035.
The increase came after UK Finance Minister Quasi Quarteng went back on a key issue of the mini-budget presented a few days ago – eliminating the highest income tax rate of 45 per cent for the highest earners.
“This shameful climb down the table without a tax cut, which Chancellor Quasi Quarteng has called a distraction, will help give the markets little reassurance that the more reckless nature of this new administration can be handled by the Conservative Party, ” commented. Susanna Streeter, analyst at Hargreaves Lansdowne.
Across the Atlantic, in September amid data showing the slowest growth in US manufacturing activity since May 2020 and an expected macroeconomic slowdown in the US dollar.
The Institute for Supply Management said its monthly manufacturing index fell 1.9 points to 50.9, well below expectations and above the 50-point level, indicating growth.
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Forex.com analyst Fawad Razakzada said the disappointing jobs data, due for release on Friday, may well be predictable, and signals that the Fed’s efforts to contain rapid inflation are beginning to weaken the economy. .
The euro was also up $0.9834, after starting the session in the red as Europe grapples with an energy crisis.
Russian energy giant Gazprom on Saturday suspended gas delivery to Italy’s Eni, blaming transportation problems in Austria.
City Index analyst Fiona Cincotta said fears of a supply crunch in Europe will increase as winter approaches.
Meanwhile, the yen rose to $144.32 against the dollar. I had previously slipped to 145.30 yen – a 24-year low of 145.90 yen on September 22, which brought about Tokyo’s intervention in the currency market amid wide policy differences between US and Japanese central banks.
While the US Federal Reserve is raising rates to curb inflation, the Bank of Japan has left its ultra-lax monetary policy in place.