Sterling Gains as US Tariff Promises Spur Market Reaction

Sterling rose against the dollar as markets reacted to US President-elect Donald Trump's tariff promises. Observers are focused on economic data that might affect the Federal Reserve's decisions. Investors are wary of potential trade conflicts impacting the British currency and global growth.

The British pound showed resilience against the dollar on Wednesday, with investors' attention diverted by US President-elect Donald Trump's tariff declarations. In contrast, the sterling's movement against the euro remained relatively unchanged.

The market awaited US economic data, potentially influencing the Federal Reserve's future policy. The dollar hit a one-week low as investors adjusted their portfolios amid Trump's tariff agenda.

With Britain's currency up by 0.3% to $1.2612, analysts expect the Bank of England's hawkish stance and possible US sanctions on the eurozone to aid the pound, although expanding trade conflicts present risks to its stability.

(With inputs from agencies.)