Home Business NewsBusiness Pound hits one-year high against dollar amid US regional bank crisis

Pound hits one-year high against dollar amid US regional bank crisis

by LLB Editor
5th May 23 10:37 am

The FTSE 100 started the day on the front foot despite selling overnight and the pound reaching a one-year high against the dollar.

AJ Bell investment director Russ Mould said:“Strength in sterling hits the relative value of the overseas earnings which dominate the index. A strong showing from heavyweight stock BP, as investors continue to react to its bumper profit earlier this week, helped it along.

“US stocks were lower overnight and the dollar fell thanks to the continuing crisis in the regional banking sector which is leading to increasing bets the Federal Reserve may have to move from a pause on interest rate hikes to actually cutting rates in order to preserve financial stability.

“Like someone trying to wipe dog mess off apair of pristine white trainers, Adidas’ efforts to leave the controversy over its association with rapper Ye behind it are only proving partially successful so far.

“On the plus side the company’s quarterly earnings did beat expectations. However, there was no update on what it plans to do with its stock of unsold Yeezy shoes with the ending of this venture resulting in a €400 million hit to revenue in the three-month period.”

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