Pound rises as Trump's tariff threats spark US asset sales

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"The pound experienced its most significant two-day surge since December on Tuesday, propelled by investors abandoning the US dollar amid escalating trade tensions between the United States and Europe over Greenland. The dispute stems from threats made by Donald Trump to impose tariffs from 1 February on imports from the UK, Denmark, Norway, Finland, France, Germany, and the Netherlands. These measures are contingent on their agreement to US ownership of Greenland, a territory under Danish autonomy."

"In response, investors have sold US assets, including the dollar, largely favouring European currencies and gold. Sterling has climbed 0.8 per cent over the past two days, reaching approximately $1.348. However, it has been outpaced by a resurgent euro, which has emerged as the primary beneficiary of the dollar's decline. The euro was up 0.4 per cent on Tuesday, marking its strongest performance since early November, trading at 87.03 pence against the pound."

The Independent seeks donations to fund journalists and documentary projects, keeps reporting freely available without paywalls, and aims to present multiple perspectives across the political spectrum. Donations enable reporters to remain on the ground and to investigate topics from reproductive rights to Big Tech. Escalating trade tensions between the United States and Europe over Greenland prompted investors to sell US assets and the dollar, shifting demand toward European currencies and gold. Sterling rose about 0.8 percent to roughly $1.348, while the euro outperformed, gaining 0.4 percent to trade at 87.03 pence. Domestic data coincided with a FTSE 100 Index fall of over 120 points.

Read at www.independent.co.uk