Since the US election last Tuesday the dollar is the only major currency to have kept pace with sterling. In the last seven days it was the strongest performer, picking up one and three quarter cents against the pound and three and a quarter cents against the euro, where it touched a 12-month high. The two main factors contributing to the dollar's popularity are the short-term outlook for interest rates and the longer term implications of a Trump presidency.

Investors are now all but certain the Federal Reserve will raise interest rates next month. The Fed chairperson Janet Yellen encouraged that expectation when she told a congressional committee the move could come "fairly soon". In the longer run investors have persuaded themselves that Mr Trump's combination of tax cuts, deregulation and infrastructure spending will not only help the economy but also lead to incresed borrowing, higher inflation and higher interest rates.