Deloitte Monday Briefing: The Pound Makes A Comeback

A personal take on economics from Ian Stewart, Deloitte's Chief Economist in the UK.

• One of the most visible manifestations of Britain's recovery is the strengthening of the pound. On a trade-weighted basis, against a broad basket of currencies, the pound has risen 9.3% in the last year and now stands at its highest level since November 2008.
• Much of the pound's rise reflects strong gains against the dollar, up by 11% in the last year, and the Japanese yen, where sterling has risen by 22%. Sterling has also made significant gains against a number of emerging market currencies in the last year, including the Brazilian real, the Indian rupee, the Hungarian forint and the South African rand. But against the UK's largest trading partner, the euro area, sterling's rise has been more modest, increasing by just over 4% in the last year.