Market News

Key takeaways

• Currency Movement: The pound rose 0.5% to $1.3421, recovering from Friday's 0.7% drop, as AI stock concerns eased and demand for safe-haven assets like the dollar cooled.
• Oil Prices: Brent crude fell 3.2% to $95.16 a barrel after reduced fears of renewed strikes on Iran, though supply risks near the Strait of Hormuz remain.
• UK Economic Outlook: Third-quarter GDP expected at 0.7% growth, supported by AI spending, defence investment, and consumer activity, despite ongoing energy price pressures.

By Sophie Kiderlin

LONDON, Nov 9 (Reuters) - The pound rose against the dollar on Monday, reversing most of Friday's decline, as the concerns over AI stocks that gave the dollar a boost at the end of last week eased and oil prices fell.

The somewhat more positive market backdrop meant demand for safe-haven assets like the dollar cooled on Monday. Sterling was last up just over 0.5% at $1.3421, having fallen more than 0.7% on Friday. 

The pound was at 83.41 pence per euro, steady on the day and not far off last week's 20-month high, hit after the Bank of England raised interest rates and hinted that additional tightening is likely unless the Iran war were to de-escalate, pushing oil prices lower. 

Brent crude futures were last down 3.2% on the day at $95.16 a barrel after US President Donald Trump downplayed the likelihood of renewed strikes on Iran, though attacks on ships near the Strait of Hormuz kept supply concerns in focus.