The British Pound quietly found its feet against the dollar this week, inching up about 1.3 per cent overall. By August 8 it reached roughly $1.345, the strongest since late July, with a big bounce on the back of the Bank of England’s rate decision. The top of the week sat around $1.345 and the low was near $1.326 earlier in the week. Daily action showed a steady climb: from around $1.328 to mid $1.34s.

That BoE move cutting rates by 25 basis points to 4 per cent in a narrow 5 4 vote was a big catalyst. The pound jumped on that dovish but divided signal. Markets liked that the bank still talked about a “gradual and careful” approach. At the same time, a soft U.S. jobs report and a Fed leaning dovish tilt added downward pressure on the dollar.

Against the euro, the pound also edged up. It traded near 86 87 pence, drifting lower in pound terms (meaning the euro got a bit weaker versus sterling).

Outside the G7 mix, the pound strengthened roughly 1.6 per cent against the rupee. It ranged from about ₹115.68 up to ₹117.89 through the week.

The pound’s resilience also came despite some messy UK data. Early in the week, manufacturing PMI figures slipped further into contraction territory, which normally would weigh on sentiment. But traders seemed more focused on the interest rate outlook than on sluggish factory output. Political chatter in Westminster added a bit of background noise too, with ongoing debates over fiscal policy and spending priorities heading into autumn. None of it sparked heavy volatility, though. The currency’s climb was mostly about the narrowing policy gap between the BoE and the Fed, with U.S. yields softening and UK rates looking likely to stay relatively supportive. By Friday afternoon, many desks described the market as calm but watchful, with positioning light ahead of next week’s UK inflation numbers.