Sterling rallied on Friday, helped by a weaker euro and after European Union leaders gave UK Prime Minister Theresa May a two-week reprieve to decide how Britain will leave the European Union.
Disappointing economic survey results in both the euro zone and the United States raised volatility across currency markets on Friday and added to the pound’s gains.
The biggest loser was the euro as investors grew increasingly concerned about the outlook for the global economy.
Sterling had plunged on Thursday in its biggest one-day fall of 2019 as fears mounted that Britain would crash out of the EU on March 29 without a deal.
The pound was up 0.6 percent at $1.3188, while its gains versus the euro were as high as 1.5 percent to 85.49 pence. The gain was largely on the back of weakness in the single currency following disappointing data out of Germany.
Source : Reuters