GBP TO USD: UK Pound Rate Today against US Dollar
- By Reuters -
- Apr 22, 2025
UK Pound (GBP) hit a fresh 7-month high against US Dollar (USD) on Tuesday as the greenback weakened amid concerns over the Federal Reserve’s independence after recent verbal attacks made by U.S. President Donald Trump against the Fed chair.
White House economic adviser Kevin Hassett said on Friday that Trump and his team would study the matter when asked if firing Fed Chair Jerome Powell was an option.
The dollar marked a fresh low against the yen and hovered around multi-year lows versus the euro and the Swiss franc.
The UK Pound dropped against the euro but remained far from the 5-month low it reached a couple of weeks ago, as the single currency benefited from the U.S. administration’s selloff in U.S. assets following recent policy announcements.
Sterling was up 0.01% at $1.3380 after hitting$1.3423, its highest since September 26.
“The UK’s inflation data and deteriorating labour market outlook have added to the pound’s challenges,” said George Vessey, lead forex and macro strategist at Convera.
UK Pound showed little immediate response to two recent economic data reports last week, but analysts see potential headwinds from a dovish shift in the Bank of England policy.
British inflation slowed to its weakest in three months in March and the labour market weakened before this month’s tax hike on employers.
Markets fully priced in a Bank of England 25 basis points (bps) rate cut next month and 87 bps by year-end. IRPR
Britain is more likely to see lower than higher inflation as a result of Trump’s tariffs, BoE policymaker Megan Greene said on Tuesday.
The euro dropped 0.13% to 85.94 pence . It hit 87.38 pence on April 11, its highest since November 2023.
Several market participants argued that further upside in sterling remained likely as the UK economy is less vulnerable to the U.S. tariff shock.
British Prime Minister Keir Starmer spoke with Trump, discussing trade between the two nations among other subjects, including the situation in Ukraine and Iran, a Downing Street spokesperson said on Friday.