Sterling reaches highest value since Brexit referendum as rate rise expected

The pound has risen to its highest level against major world currencies since before the 2016 Brexit vote. A currency index that tracks the pound against 18 currencies reached 86.4, its strongest point since early 2016. Over the past year, the pound gained more than 5.7 percent against the euro and 3.5 percent against the US dollar. Part of the dollar's weakness followed the US midterm election results. The Bank of England's rate-setting committee was also expected to vote on raising interest rates for the first time in over three years. Higher interest rates tend to attract foreign investors, which pushes a currency higher. A stronger pound makes imported goods cheaper and foreign holidays more affordable for people in Britain.