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The pound on Tuesday moved past the $1.25 level for the first time in more than a month, rising as traders price in a more optimistic global environment.
The pound GBPUSD, +0.51% traded at $1.2559, up from $1.2490 on Monday.
The dollar has been losing ground to several currencies of late, even before the recent riots that have been gripping the U.S. The Australian dollar AUDUSD, +0.86% and Norwegian kroner NOKUSD, +0.63% have gained even more than the pound over the last month.
“The U.S. dollar [is] seemingly taking all the pressure at this moment, while U.S. yields remain locked in well-defined ranges,” said Robin Wilkin of Lloyds Bank.
The gains came as the last round of U.K.-European Union negotiations started. The transition period extension deadline is the end of June. Prime Minister Boris Johnson is going to meet Ursula von der Leyen, European Commission President, later this month.
The FTSE 100 UKX, +1.01% gained 0.9%, after having advanced for 4 of the last 5 sessions.
Gainers included Meggitt MGGT, +8.84% and Rolls-Royce RR, +5.79%, both of which are reliant on the aerospace industry for business.
Tesco TSCO, -1.85% was lower as the supermarket chain said its chief financial officer, Alan Stewart, will retire.
