Pound's Resilience Amid U.S. Trade Tensions

The British pound experienced a slight decline against the dollar, yet stayed near four-month highs due to the UK's cautious approach to U.S. trade disputes. The pound's stability is reinforced by Britain's balanced trade with the U.S., reducing vulnerability to tariffs compared to Europe.

The British pound experienced a minor decrease against a stronger dollar on Thursday. Despite this, it maintained proximity to four-month highs. The steadiness is attributed to the UK's cautious approach amidst U.S. trade tensions.

On Thursday, the pound depreciated by 0.15%, settling at $1.2941. Earlier, it reached $1.299, marking its highest since November 7. 'It's primarily a dollar narrative at the moment,' remarked Francesco Pesole, an FX strategist from ING, referencing the sterling's slight dip.

Experts point to Britain's balanced trade position with the U.S. as a stabilizing influence for the pound. Unlike the EU and Canada, which retaliated against U.S. President Donald Trump's tariffs on steel and aluminum imports, the UK adopted a more measured response.

(With inputs from agencies.)