Sterling Surges as Trump's Tariff Exemptions Boost Market

The British pound surged against major currencies after U.S. President Trump exempted smartphones and computers from tariffs, even as trade uncertainties persisted. Sterling gained for the fifth consecutive session against the dollar and showed resilience against the euro. Markets are eyeing UK economic indicators amid tariff-induced disruptions.

The British pound witnessed a notable rise against both the dollar and the euro on Monday, following President Donald Trump's decision to exclude smartphones and computers from his tariff measures.

Investors' apprehension led to a withdrawal from U.S. assets, favoring European currencies like the euro. The ongoing trade uncertainties revolve around Trump's impending announcement regarding tariff rates on imported semiconductors, which indicates temporary relief for tech items may soon expire.

Sterling displayed strength for the fifth consecutive session against the greenback, nearing a six-month peak. Despite a slight dip for the euro, it maintains significant gains against the pound since the initiation of Trump's reciprocal tariffs. Analysts suggest the UK's economic data will be pivotal as markets adjust to the evolving trade landscape.

(With inputs from agencies.)