British pound gains 1.3% on dollar on post-Brexit deal hopes

Date: 23 December 2020 5:35pm WAT

(FILES) In this file photo taken on April 11, 2017 A trader passes a customer their change in the form of a five pound sterling note and one and two pound coins at Whitechapel Market in east London. - The British pound slid below $1.20 on September 3, 2019, for the first time since the start of 2017, as the UK faces a possible general election amid Brexit turmoil. Sterling hit $1.1972 around 0640 GMT, as British Prime Minister Boris Johnson faces a rebellion by his own lawmakers over his Brexit strategy that could result in an early general election next month. (Photo by Daniel LEAL-OLIVAS / AFP)

The British pound surged Wednesday against the dollar on optimism that London will finally reach a post-Brexit trade deal with the European Union.

Sterling rose to $1.35 around 1551 GMT. The pound also gained against the euro, which stood at 90.16 pence.

European sources told AFP that the EU and Britain could agree the terms of a post-Brexit trade deal within hours.

“We are in the final phase,” one official said. Asked whether this meant a deal later Wednesday, a source close to the talks said: “Very likely, yes.”