# Sterling reaches strongest level since 2016 referendum-day crash

- URL: https://talkfuse.com/story/pound-hits-highest-level-since-its-crash-after-2016-brexit-vote/
- Published: 2026-11-05T15:20:20+00:00
- Updated: 2026-11-05T15:50:16+00:00
- Original publisher: The Guardian (publisher lean: Left)
- Original article: https://www.theguardian.com/business/2026/nov/05/pound-hits-highest-level-since-2016-brexit-vote
- Topics: Americas, Elections, Europe, Politics, Software, Technology, UK, World

## Key points

- Sterling reached its strongest level since referendum day in 2016.
- The Bank of England’s currency index rose to 86.5372.
- A weaker dollar and hopes for closer EU ties supported the pound.

## Summary

Sterling has reached its strongest level against a basket of currencies since the day of the 2016 EU referendum, when it began a sharp decline. The rise reflects a weaker US dollar after the Democrats’ midterm election victory, alongside the pound’s gains against currencies including the euro and yen; investors also appear more positive about closer UK ties with Europe.

The Bank of England’s sterling effective exchange rate index stood at 86.5372, compared with 87.9248 on referendum day and a low of 73.1 in March 2020. On Thursday, sterling was little changed against the dollar at $1.3463 and traded near an 18-month high above €1.20. Markets were also anticipating an interest rate rise by the Bank of England, while the UK and EU are expected to announce new trade deals at a summit later this month.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.