Published by Global Banking & Finance Review®
Posted on December 24, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleSterling holds near multi-month highs against the dollar and euro, influenced by the BoE's cautious approach and thin holiday trading.
LONDON, Dec 24 (Reuters) - The pound held around a three-month high against a broadly softer dollar and near its firmest in two months against the euro on Wednesday, although trading was thin ahead of the Christmas holiday.
Sterling briefly inched up to as high as $1.35335 in early trading, its highest since mid-September, though was last flat on the day just below that level.
The dollar is at similar levels against other European currencies including the euro. [FRX/]
For the pound it was a similar story versus the euro. The common currency nudged down to 87.21 pence, its lowest since mid October, but was last flat on the day just above that.
With the Christmas holiday approaching in Britain, and many market participants already off, trading was thin.
That left sterling still largely shaped by last week's Bank of England meeting.
The BoE cut interest rates after a narrow vote by policymakers but it signalled that the already gradual pace of lowering borrowing costs might slow further.
Should that materialise, that would see the pound remain supported versus other currencies, particularly the dollar, with the Federal Reserve expected to continue easing next year.
(Reporting by Alun JohnEditing by Bernadette Baum)
Foreign exchange, or forex, refers to the global marketplace for trading national currencies against one another. It is the largest financial market in the world, where currencies are bought and sold.
Interest rates are the costs of borrowing money or the returns on savings, expressed as a percentage. They are influenced by central banks and affect economic activity and inflation.
A currency is a system of money in general use in a particular country or economic area. It serves as a medium of exchange, a unit of account, and a store of value.
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, managing monetary policy, and maintaining financial stability within the economy.
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