Sterling extends gains to five-week high

Sterling rose on Tuesday for the fourth straight session against dollar, marking five-week highs on hopes for a quick recovery for the UK economy from the Covid 19 hit. 

GBP/USD rose 0.5% to 1.2554, the highest since May 1, after closing up 1.1% yesterday, the third profit in a row, and the largest since March 27. 

For last week, the pound rallied 1.5%, the second weekly profit in a row on improving risk appetite for investors. 

The dollar index fell 0.3% on Tuesday for the sixth straight session, marking three-month lows at 97.54. 

Haven demand on dollar weakened amid hopes for a quick recovery for the global economy, while mass US protests hurt greenback demand as well. 

In the UK, the government continues efforts to loosen restrictions and open services and economic activities gradually again. 

Bets on UK negative rates in 2020 plummeted as well amid hopes for a return to GDP growth in the second half of the year.