Pound makes biggest monthly gain against dollar since 2009

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Pound clocks up its biggest monthly gain against dollar for more than a decade

By Daily Mail City & Finance Reporter

Published: | Updated:

The pound has clocked up its biggest monthly gain against the dollar for more than a decade. 

Sterling jumped as high as $1.3169 yesterday having started the month at $1.24 – a rise of more than 6 per cent. 

Upper hand: The rally in sterling came as the Government’s borrowing costs hit record lows

That was the best performance against the greenback since May 2009 when the pound recovered some of the ground it lost during the last financial crisis. 

The rally in sterling came as the Government’s borrowing costs hit record lows. 

Ten-year gilt yields fell to just 0.07 per cent and five-year gilt yields fell deeper into negative territory to minus 0.153 per cent – meaning you pay the Government to lend it money. 

The dollar has suffered recently amid criticism over President Trump’s handling of the pandemic, doubts about the chances of a strong economic recovery and his suggestion this week that November’s presidential election should be delayed.

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