Sterling rises to 1.3650, its highest since February, driven by US Treasury’s plan to boost long-dated debt purchases.
GBP/USD climbed to 1.3650 late Tuesday, marking a six-month high and a 1.5-cent gain from early August. The rally stems from the US Treasury’s August 19 announcement to double purchases of longer-dated government debt, weakening the Dollar broadly.
The move reflects a repricing of US debt management rather than Sterling-specific demand. Long-dated Treasury yields, a key Dollar support, face pressure as the buyback facility aims to cap yields. Markets quickly noted the shift does not alter total debt levels, limiting its long-term impact.
Positioning data shows large speculators remain net short over 54K Pound contracts, with the next update due Friday at 19:30 GMT.