Reeves supported the long-awaited construction of a new runway at Heathrow Airport and mentioned that the UK aims to boost its economy by re-establishing connections with the European Union and enhancing its special relationship with the U.S.
She’s facing pressure to calm investors' worries about the UK economy after a bond market selloff this month pushed government borrowing costs to their highest levels in decades.
Later in the day, markets anticipated that the U.S. Fed would keep interest rates unchanged during its policy meeting, leading to a stabilization of the dollar against various currencies, even as uncertainties about U.S. trade tariffs remained.
"The main question is what additional cuts we might see throughout the year," noted Commerzbank foreign exchange analyst Antje Praefcke.
"Unexpectedly, the new U.S. president didn’t rush to impose tariffs on 'everyone' right after taking office, which means we need to rethink the potential inflationary impact of rising import prices in the U.S. and the Fed's likely response."
The pound fell for the second consecutive day against the dollar, trading down 0.2% at $1.2417.
It took a hit against the U.S. dollar and the euro at the start of January as worries about the UK’s economic outlook grew amid a global bond selloff.
However, some of the pressure on the British government has lessened as yields on UK government bonds, known as gilts, have pulled back from their recent peaks.
The pound saw a slight increase against the euro, gaining for the fifth day in a row, with one euro costing 83.76 pence.
Investors are ramping up their expectations for rate cuts from the Bank of England this year, with 71 basis points factored in. However, they still think the BoE will cut rates less than the European Central Bank, which is looking at around 90 basis points of easing.