The Pound Sterling rose nearly 3 percent against the dollar, on Tuesday, January 17, touching its highest in nearly two weeks and on pace for its biggest gain in more than eight years.
The pound has strengthened after Prime Minister Theresa May outlined her plans to take the UK out of the EU.Sterling rose sharply when she started speaking and continued up. By close of play in London, it was up 2.9% against the dollar for the day at $1.2392.
The pound had already made gains in early trading on Tuesday, but surged as a result of the prime minister’s speech.
The pound rose more sharply against the dollar than it did against the euro because the US currency had been weakened by remarks made by President-elect Donald Trump in the Wall Street Journal.
Against the euro, it added 1.83% to reach 1.157 euros. At the same time, the benchmark FTSE 100 share index, which was already in negative territory, fell further to stand 1.46% lower at 7220.38.
In her speech, Mrs May said the UK would leave the EU’s single market, but stressed that it would seek new international trade opportunities and be open to global trade.
Charts showing the value of the against the dollar before and during Theresa May’s Brexit speech