The pound sterling edged lower against a firm US dollar on Wednesday but remained near a three-year high, poised for its strongest monthly performance since November 2023. The pound was down 0.28 per cent to 1.3368 against the dollar and slipped 0.2 per cent to 85.08 versus the euro by 10:46 GMT. Despite the dip, the pound has gained 3.8 per cent against the dollar and 1.7 per cent against the euro this month, supported by investors diversifying away from the euro amid weaker eurozone macroeconomic prospects. Safe-haven currencies outperformed as the dollar faced continued pressure from tariff-related uncertainties, even as US President Donald Trump eased auto sector duties. Analysts say the UK's efforts to mitigate US tariff impacts and improve post-Brexit EU trade ties could support the pound. In domestic data, Nationwide reported UK house prices fell 0.6 per cent in April, the largest monthly drop in over 18 months. Attribution: Reuters Subediting: Y.Yasser
