(Bloomberg) -- The pound extended its advance to a fifth day, erasing this year’s drop against the dollar.
The currency rose as much as 0.2% to $1.3265. The Bloomberg Dollar Spot Index has fallen around 10% from late March when the Federal Reserve acted to provide dollar liquidity in the virus-induced global market panic.
”The dollar is doing most of the heavy lifting for the pound,” said James Athey, a money manager at Aberdeen Standard Investments. “Sterling is still cheap as chips. Everyone has problems, most of them huge, but UK PLC has fewer than most.”
It’s a dramatic turnaround for sterling, which plummeted in March to the lowest level in more than three decades. Outflows from the dollar have helped the currency rally, despite the possibility that the nation will transition out of the European Union without a trade deal.
Other Group-of-10 peers erased their losses against the dollar earlier in the year, with the euro and the Australian dollar now stronger against the greenback.
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