Pound rises as AI stock concerns ease and oil prices fall

The pound rose more than 0.5% against the US dollar on Monday, recovering most of its losses from Friday.

It reached $1.3421 as worries about AI shares eased, reducing demand for the dollar as a safe place to hold money.

Falling oil prices also helped lift the pound, with Brent crude futures down 3.2% to $95.16 a barrel.

Oil remains well above its pre-war levels, and attacks on ships near the Strait of Hormuz have kept supply concerns alive.

The pound was little changed against the euro, near a 20-month high reached last week after the Bank of England raised interest rates and signalled it could tighten policy further.

UK economic growth figures for the third quarter are due later this week, with economists surveyed by Reuters expecting growth of 0.7%.

The figures will help investors and policymakers assess how the economy is coping with the conflict and higher energy costs, which could squeeze household spending.