Sterling jumped to multi-year highs against other currencies. This was on the back of robust UK economic growth and signals of no interest rate cuts soon. Investors also sought to find some comfort in the UK as political uncertainties weigh in other countries.

Sterling, the UK’s currency, has spent some time recently gaining further ground. It reached a multiyear high versus peers following positive data on the UK economy and signs that interest rates might not be raised sooner than thought.

Over the past few weeks, the pound has appreciated significantly. It has appreciated even against the US dollar, which is usually very strong. This week, the pound further strengthened against the dollar, as the US released news of its having prices for things that turned out not to be as inflationary as people had thought.

People who trade money—dollars for pounds, for instance—began to bet that the US would slash its interest rates in September. Cuts to interest rates can drive down the value of a country’s money relative to others. That could make the pound even stronger against the dollar in the future.

The gauge of how the Pound is performing versus all the money in the world was likewise not far from its highest since 2016 when the UK voted to leave a group of countries called the European Union.

The UK economy is growing more than people thought this year. It makes a person understand that they might want to give their money to the UK because it seems good. When more people want to use a country’s money, the country’s money gets strong.

Well, the Bank of England is that bank which helps decide how much money is worth in the United Kingdom. It said some good things about the economy recently. It said that the economy has been growing faster than it expected during the first part of this year. When people who control money say good things like this, every other person will feel more confident using that country’s money.

Some analysts are of the view that new government in the UK may come up with regulations that would further encourage the growth of businesses. Growing businesses create more income and new employment opportunities. So it will further strengthen the economy and attract more users for the UK’s currency.

It simply concludes that the appreciation of the pound currency is a pointer to how global events can easily influence the value of a country’s legal tender. As long as the economy of the UK stays strong and sturdy, there is no reason why the pound could not continue to appreciate even higher. This might make it an excellent option for those intending to retain their capitals or probably generate even more income.

Kathleen Brooks is what is called an analyst—a person who researches and analyzes the behavior of money. She espouses the view that new UK leadership could work magic on the pound. Brooks suggests, as the UK’s new government, it might do exactly what enables economic growth. This would make investors feel safe about putting their money into the UK economy.

What’s exciting about new multiyear highs in sterling, though, is that they are not just due to good economics but also to good politics in making money worth more. If investors do really feel that the UK is a safe place to put their money, the pound could indeed strengthen against other currencies moving forward.