The pound rose to its highest level since 15 September on Wednesday 4 November, as the US dollar weakened following the Democrats' sweeping victory in the US midterm elections. Traders were also positioning ahead of the Bank of England's policy decision on Thursday.

Reuters reported that sterling rose 0.63% against the dollar to $1.3495 at 10:22 GMT, and stood at 83.43 pence per euro, a touch firmer on the day. By midday in London, Alliance News quoted the pound at $1.3480, higher than $1.3416 at the London equities close on Tuesday.

A weaker dollar, not just a stronger pound

The move was driven at least as much by dollar weakness as by sterling strength. The euro rose to $1.1248 at midday, from $1.1197 late on Tuesday, according to Alliance News, and Reuters reporting carried by Euronext put the dollar at a one-month low on Wednesday. The Edge's intraday snapshot put the US Dollar Index at 101.46, down 0.40%, with sterling at $1.3476, up 0.48%.

FXStreet's European-session reporting likewise put the pound at a fresh seven-week high at around $1.3500, with the Dollar Index about 0.47% lower near 101.40. The reports linked the dollar's slip to concerns over tighter scrutiny of technology and artificial intelligence companies, and to the prospect of political gridlock constraining broad policy change in Washington.

What comes next for sterling

Attention now turns to Thursday's Bank of England announcement, which markets widely expect to bring a rate rise. Currency moves can reverse quickly on a policy surprise, so the next test for the pound is the decision itself and the Bank's guidance, rather than Wednesday's high alone. Market news is not investment advice.

Sources: Reuters via London Stock Exchange, British pound hits seven-week high against wilting dollar, 4 November 2026; Alliance News via London Stock Exchange, London Market Midday, 4 November 2026; FXStreet, British Pound extends rally as Republicans lose both US Houses, 4 November 2026.