adminLONDON. — Reuters Sterling held around $1,31 yesterday as tensions in the Middle East encouraged buying of safe-haven currencies and curbed demand for the likes of the British pound, while investors awaited a parliamentary debate on Brexit legislation.
Investors remain cautious about political uncertainty as Britain prepares to leave the European Union and begins negotiations with the EU over their future trading relationship.
The UK parliament returns today and will debate the Brexit bill, which includes a clause ruling out any extension of the transition period for trade talks beyond December 2020.
The pound rose 0,3 percent to $1,3113 in early trading yesterday but remains below levels of above $1,32 seen last week. Sterling fell Friday after the United States assassinated the Iranian general Qassem Soleimani, panicking investors and boosted demand for safe-haven currencies, including the dollar.
Against the euro, the pound rose 0,1 percent to 85,26 pence. — Reuters.
Peter Tanyanyiwa
Online Reporter