The pound had its biggest one-day gain against the dollar in more than a year as Donald Trump's threat to impose trade tariffs from his first day in office was delayed.
Sterling rose by as much as 1.1% to $1.23 after officials told The Wall Street Journal that President Trump would not impose new tariffs on his first day in office.
Instead, according to The Times, he is planning to issue a broad memorandum that directs federal agencies to study trade policies and evaluate US trade relationships with China and America’s continental neighbours.
The news helped the pound to rally while the FTSE 100 hit another closing record of 8,520.54, up by 15.32 points, or 0.18%, from Friday’s record close of 8,505.22.
Trump also signed an executive order declaring a national energy emergency. The executive order, aimed at boosting US oil and gas production, sent Brent crude, the international benchmark, down 0.8% to $80.15 a barrel on Monday night.
Bitcoin also reached a new record of over $109,000 in the early hours of Monday, before paring gains to $104,000, as the incoming president promised a crypto-friendly administration and pledged to make the US the “crypto capital of the planet”. He has also called for a “strategic national bitcoin reserve” during his campaign.