Sterling rose on Friday as investors became more confident that the United States government and central bank economic stimulus could alleviate some of the impact of the coronavirus crisis.
The U.S. dollar had previously strengthened on the back of its perceived safe-haven status while sterling - considered a riskier currency more closely associated with equity market performance - moved in the opposite direction.
Waters have calmed since the U.S. government promised $2 trillion in fiscal stimulus and the Federal Reserve injected more dollars into the financial market by buying U.S. government bonds and swaping dollars for foreign currencies with other major central banks.
Sterling was up 0.4% at $1.2253, having touched a near-two-week high of $1.2304. It gained more against the euro, rising by 0.8% to 89.80 pence.
Source : Reuters