British pound jumps sharply to one-week high against a weak dollar; UK unemployment rate steadies at 5.1%

The British pound is seen adding close to 1% against the dollar on Tuesday amid sharp decline in the greenback overseas. The dollar index lingers at a one-week low, well below 99 mark on escalating tensions after US President Donald Trump announcement to impose new tariffs on goods from eight European countries fueled concerns about a broader trade war. US President Donald Trump said over the weekend that a 10% tariff would be imposed from February 1 on goods from Denmark, Sweden, France, Germany, the Netherlands, Finland, Britain, and Norway until the US is allowed to purchase Greenland. Besides, UK labor market report showed that the unemployment rate remained steady at 5.1%, while it was expected to drop to 5%. The report also showed that the economy added 82K fresh workers after a reduction in the labor force by 17K in the three months ending in October. Pound Sterling jumps to near 1.3481 against the dollar, up 0.78% on the day. On the NSE, GBP/INR futures climb 0.54% at 122.66.

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