Why is the pound rising against the dollar? The British currency – the pound sterling – at the end of the week, temporarily won back its losses against the dollar because of the prospect of lower taxes, writes Business Insider.

After a week ago, the new UK finance minister Kwasi Kwarteng, put forward radical proposals to cut taxes by borrowing, it undermined investors’ confidence in the economy and brought down the pound. However, this week the pound could recover again because government leaders agreed to hold emergency talks with independent experts from the Office for Budget Responsibility on the plan to reduce taxes.

In particular, on Asian exchanges, the pound regained its previous losses. Let’s remember: on Monday the British currency fell to a historical low of $1,035, and today reached $1,233 in Asia and rose 0.16% in Europe to $1,114.

Why is the British pound rising?

According to official data, the U.K. economy grew 0.2% from April to June, compared to an expected 0.1% contraction, indicating that a recession is not yet on the horizon. According to analysts, this has helped ease some of the market’s fears.

The government’s actions were criticized this week by the IMF, which warned that the new cabinet’s policies could run counter to the Bank of England’s efforts to rein in inflation.

Earlier, we reported that the yuan-dollar exchange rate had fallen to its lowest level since 2008.