Pound climbs to highest level against dollar in almost a year

Sterling rose to $1.26 this morning – its greatest recovery since late May 2022.

Huw Pill said that people are responding to high inflation by asking for higher wages or charging more for their products (John Walton/PA) (PA Wire)

The pound has climbed to its highest level against the dollar in almost a year as the US banking crisis spreads.

Sterling rose to $1.26 on Friday morning, an increase of half a cent – its greatest recovery since late May 2022.

Last autumn, the pound plummeted to its lowest level against the dollar in history, as the markets responded nervously to the announcement of then-prime minister Liz Truss and chancellor Kwasi Kwarteng’s disastrous mini-budget, which ushered in the nation’s biggest tax cuts in 50 years.