Pound recovery accelerates as Trump’s trade war drags on dollar

The pound hit a seven-month high against the dollar and was trading at levels against the euro not seen more than two years on Wednesday.

The moves, which will offer some relief to UK holidaymakers converting cash abroad, were seen as a building of momentum behind the UK currency in a week that has witnessed the dollar come under pressure over fears of an escalated US trade war.

Donald Trump signalled an expansion of his protectionist agenda on Monday as he threatened tariffs on steel and aluminium from Brazil and Argentina – saying their weakened currencies had made US products uncompetitive.

The US president then turned his fire on France, warning tariffs could be slapped on champagne, luxury handbags and Roquefort cheese in retaliation for a revenue tax on big US tech firms.

Tuesday saw him admit, during a news conference on the fringes of the NATO summit in London, that his 16-month trade fight with China – blamed for curbing economic growth worldwide – could drag on beyond next year’s US presidential election.

Mark Gibson

Graduates in Northwestern University, Evanston, Illinois 1990. Move to Los Angeles California in 2004. Specialized in Internet journalism.

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