The British pound is widely forecast to continue rising against the U.S. dollar.
Matt Cardy | Getty Images
The British pound is hovering at its highest level in more than three years — and analysts are divided on the potential for further upside.
Britain’s currency was last seen trading around the $1.36 mark on Wednesday morning in London.
It marked a slight drop from Tuesday, when sterling hit its highest level since January 2022.
So far this year, the pound has surged 8.7% against the greenback.
GBP/USD price
Against the euro, however, sterling is down 2.9% year-to-date. It was last seen trading marginally higher against the euro zone currency, with one pound buying around 1.173 euros.
U.S. dollar story this year,” she told CNBC by email on Wednesday.
U.S. President Donald Trump’s unpredictable trade policies shook confidence in American assets earlier this year, which in turn has sparked concerns in markets about de-dollarization.
Paul Jackson, global head of asset allocation research at Invesco, said sterling was on a recovery journey from the “extreme low” seen in the aftermath of former British Prime Minister Liz Truss’s so-called mini budget, which sparked a severe sell off of the pound and U.K. government bonds in 2022.
He agreed, however, that much of the movement this year was attributable to dollar weakness, pointing out sterling’s simultaneous depreciation against the euro.
