The British pound ticked higher against the dollar, holding most of its recent gains as market uncertainty continues to shape currency movements.
Sterling rose 0.1% to $1.3407, remaining above pre-announcement levels but below recent highs, reflecting cautious investor sentiment.
Despite initial optimism, lingering doubts over stability have limited further upside, keeping traders focused on evolving global developments.
The dollar has strengthened overall, supported by perceptions of economic resilience and lower exposure to external energy shocks.
Sterling, like other European currencies, has shown sensitivity to headlines, fluctuating in response to shifts in broader market sentiment.
The pound also gained against the euro earlier, benefiting from stronger equity performance and increased investor risk appetite.
However, analysts suggest limited room for further appreciation, citing expectations of monetary policy divergence between the Bank of England and the European Central Bank.
The euro edged slightly higher against sterling, as markets weigh interest rate outlooks and longer-term economic prospects.
