Monday, 19 March 2018 23:56 WIB |
Sterling surged on Monday as Britain and the European Union agreed to a 21-month post-Brexit transition period and a potential solution to avoid a œhard border for Northern Ireland.
The pound, which had already been rallying on expectations for a transition deal, gained further after British Brexit minister David Davis and EU chief negotiator Michel Barnier announced an agreement.
Investors had largely expected Britain to secure an agreement at Thursday™s EU summit, but concern remained that a deadlock over the Irish border would derail a deal.
Against the dollar the pound rose as much as 1 percent to $1.4088, its strongest since Feb. 16 and the biggest one-day rise since January, before falling back. It was up 0.6 percent at $1.4031 at 16:00 GMT.
Versus the euro, sterling climbed as much as 0.8 percent to 87.455 pence per euro, its best level since Feb. 8.