FX.co ★ Pound Hits Mid-February High

The pound rose to $1.36 in early May, its highest level since mid-February, as investors weighed the Bank of England’s latest policy decision alongside a renewed surge in oil prices driven by tensions in the Middle East. The BoE’s Monetary Policy Committee voted 8–1 to keep Bank Rate unchanged at 3.75%, with Chief Economist Huw Pill the only dissenter, arguing for a 25-basis-point increase. Governor Andrew Bailey described the move as an “active hold,” emphasizing the need to assess whether energy price shocks will prove lasting against a weakening economic backdrop. At the same time, oil prices extended their gains after US President Donald Trump insisted on maintaining a naval blockade of Iranian ports, stoking fears that the Strait of Hormuz could remain closed for an extended period. Investors also began focusing on Thursday’s municipal elections in Britain, where opinion polls point to a potentially significant setback for Prime Minister Keir Starmer’s Labour Party.