Sterling hits nine-month high against dollar as full US shutdown looms

Sterling rose to its highest level in nine months against the US dollar as the US government slipped into a partial shutdown.

Sterling hit $1.6232 against the dollar this morning, a rise of 0.3% and its highest level since January, as the troubled political situation across the Atlantic intensified. Overnight, the Republican-led US House of Representatives failed to authorise latest budget plans, leaving an estimated 700,000 public sector workers facing the possibility of unpaid leave. That meant the dollar also slipped against a basket of other currencies, continuing a recent downwards trend. The currency fell 0.2% against the yen to 98.07, heading towards a four-week low, despite an upcoming fiscal stim...