Both the pound and the euro have grown in strength against the US dollar.

The pound has grown in strength against the US dollar, now reaching its highest point in seven months.

In early trading today (1 June), one pound was worth $1.6288. This is the pound’s strongest position since November 2008.

The euro has also risen against the dollar, with one euro now worth $1.4197 – its strongest position in five months.

Interest rates in Europe and the UK have remained higher than the current US rates of 0% to 0.25% giving the two currencies a boost over the dollar. The UK interest rate is currently 0.5% and the rate for the eurozone stands at 1%.

The latest news about the currencies gives traders more confidence to switch to higher-yielding currencies, which will help stimulate the global market.

China has also reported positive economic data suggesting that the global economy may be improving.

Manufacturing output in China and the eurozone exceeded expectations in May, yet another indication that the economic situation could be getting better.