Sterling rallies vs dollar, flat against euro as risk premium unwinds

Sterling rallied against the U.S. dollar on Monday, alongside the euro and the Swiss franc, after the Trump administration threatened Federal Reserve Chair Jerome Powell with a criminal indictment.

The greenback fell sharply as the unprecedented move raised concerns about the U.S. currency’s safe-haven status.

The pound rose 0.43 per cent to $1.3460 , recovering after hitting $1.3392 earlier in the session, a fresh three-week low.

Analysts argued that a reduction...