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Pound highest since January 2022 against dollar as Trump eyes Fed chair successor - YAHOO FINANCE
The pound climbed to its highest level against the dollar in more than three years on Thursday morning, buoyed by fresh speculation over the future leadership of the US Federal Reserve.
Sterling rose 0.5% to $1.3725, its strongest level since January 2022, after a report in the Wall Street Journal indicated that Donald Trump is weighing an early announcement on who would replace Jerome Powell as Fed chair.
The dollar weakened broadly on the news, with the US Dollar Index (DX-Y.NYB) which tracks the greenback against a basket of six major currencies down 0.5% in morning trading.
Trump has grown increasingly exasperated with Powell over the Fed’s reluctance to cut interest rates. While Powell’s term is not due to expire until May next year, an early announcement could shift attention to the monetary stance of his potential successor.
Announcing Powell’s replacement early would put the focus on where the next Fed chief thought interest rates should be set.
The pound has now gained 8.7% against the dollar so far this year, lifted by both a softer US currency and fading recession fears in the UK.
