Money

Pound hits three-year high, as reopening hopes lift travel and oil firms – business live


Rolling coverage of the latest economic and financial news

4.28pm GMT

Although the pound has dipped back from its three-year high of $1.42, analysts suspect it could push higher this year.

Capital Economics have raised their forecast for sterling’s value at the end of 2021, from $1.40 to $1.45.

First, it could conceivably have encouraged more portfolio flows into the UK stock market given its sectoral composition – the UK has a high weighting of energy and financials, which have benefited most from the vaccine-induced rotation. And second, the UK’s vaccine rollout has been especially successful, improving the relative prospects for its economy.

4.20pm GMT

The jump in the oil price has sent shares in BP (+5%) and Royal Dutch Shell (+3.5%) higher, to around the top of the FTSE 100 leaderboard.

The FTSE 100 is now up for the day, gaining 35 points or 0.5% in late trading to 6661, with the pound having slipped back.

Continue reading…



READ SOURCE

READ  UK can no longer close its eyes to racial inequality

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.