Pound hits 2009 high

The pound has staged a strong comeback on the markets this week, on increasing political stability and further reports of ’green shoots’ of economic recovery in the UK.

An apparent resolution to the turmoil that plagued Gordon Brown’s premiership on the back of poor election results pushed sterling to just over $1.65 this morning, up from the low of under $1.59 marked at the beginning of the week.

Meanwhile, the pound is also trading at over €1.17 against the euro - its highest level this year.

Recent days have seen the release of separate reports from lenders showing a rise in house prices for May and a rise in the latest Purchasing Managers Index.

Respected financial analysts at the National Institute of Economic and Social Research and Defaqto have also suggested that the recession in Britain could already be over.

With the downturn near its worst at the turn of the year, the pound had slumped to a 24-year low against the dollar of $1.35 and an all-time low against the euro of €1.02.

Neil Jones at Mizuho told Reuters: ’The economic view is changing from very grim to stable, and that is bullish for the pound.’ADNFCR-2318-ID-19216377-ADNFCR