Bank of America Corp. is projecting that the British pound will increase by 8% against the US dollar by the end of 2025. The bank believes that the pound will reach $1.38 due to several factors, including stronger economic growth in the UK compared to the eurozone, fiscal stimulus measures, and relatively high interest rates in Britain.

This optimistic outlook reflects confidence in the UK's economic resilience and the potential for continued currency appreciation in the years to come.

In addition, BofA predicts that the pound will strengthen to 80 pence per euro, which would be its highest value against the euro since the Brexit vote in 2016.