The pound climbs to the highest level since July

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The pound has reached its highest level against the dollar since July, hoping to avoid a Brexit without agreement.

The pound sterling jumped more than 1% Friday to more than $ 1.24 against the dollar, its highest level in seven weeks.

The pound was strengthened after an article in the Times said the DUP, the largest political party in Northern Ireland, was ready to abide by some European rules after Brexit.

However, the DUP quickly rejected the request.

Despite this, the pound sterling maintained its gains and compared to the euro, it rose 0.7%, to exceed 1.12 euros.

Book v dollar

"It's a short-term relief because it seems likely that the Brexit deadline could be extended for a short time," said Lee Hardman, exchange economist at the Japanese MUFG bank.

The pound rose more than 4% over the last eight days, after Parliament passed a law that would require the government to seek an extension of Article 50 and avoid a Brexit without agreement at the end of the year. month of October.

Hardman said the pound was also boosted by figures released earlier in the week, which showed that the UK's growth was faster than expected in July, easing fears of a recession.

"The reduction of interest rates by the Bank of England now seems very unlikely and is more likely to keep rates unchanged for the rest of the year," he said.