Skip to main content

Sterling’s strength is unlikely to last

Sterling has been the best performing major developed market currency over the past few months, appreciating to more than 1.64 dollars, compared to an exchange rate of 1.50 during the summer. The strengthening has been driven by a rise in relative interest rate expectations, as the UK economic recovery has gathered pace while the Fed has been talking down the prospect of monetary tightening in the US.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access