The Sterling Pound hit its highest level against the dollar in a year on Wednesday as investors bet on UK interest rates staying higher for longer. The data reveal the rate of inflation was proving more stubborn than expected by some analysts which prompted traders to cut bets on an easing of rates in August, and sent the pound above $1.30 for the first time since last July. The Pound has also boosted by market hoping new Labour government will offer economic stability. UK inflation was steady in June, in line with Bank of England’s target rate of 2 per cent. Higher rates in the UK increase the pound’s value, because it can attract more overseas investment and more demand for Sterling, pushing ump the value relative to other currencies.

A hung parliament in France and upheaval in the US presidential race, with the attempted assassination of Republican candidate Donald Trump on Sunday and doubts around the ability of Joe Biden to serve another four years in office have all added to global market jitters.

On Wednesday, King Charles set out Prime Minister Keir Starmer’s plans to revive the economy, focusing on delivering new homes and infrastructure projects.