Sterling extended its advance beyond $1.35, rebounding from last week’s one-month lows as the US dollar weakened amid renewed uncertainty over US trade policy. Over the weekend, US President Donald Trump announced plans to lift a temporary global tariff to 15% from 10%, after the Supreme Court blocked his broader tariff measures on Friday. However, US Trade Representative Jamieson Greer stressed that existing trade agreements remain valid, including last year’s deal with UK Prime Minister Keir Starmer, easing concerns that British exports would face the higher 15% rate. The pound also drew support from a run of strong domestic data. The latest S&P Global UK PMI showed private-sector activity expanding in February at its fastest pace since April 2024, while January retail sales exceeded expectations. Meanwhile, public sector net borrowing recorded a GBP 30.4 billion surplus, the largest monthly surplus on record.