Stirling rises against dollar, euro
London - Sterling rose against the dollar and the euro on Friday after data showed the British economy had grown more than initially estimated in the second quarter, lifting prospects that interest rates may rise sooner than the Bank of England has signalled. Gross domestic product expanded 0.7 percent on the quarter, beating the initial reading and consensus forecast of 0.6 percent. The pound was last up 0.2 percent at $1.5624, having hit a session high of $1.5638 after the data.
The euro was down 0.2 percent at 85.48 pence, after slipping to the day's trough of 85.42 pence, but staying above the 1-1/2 month low of 85.05 pence struck last week. BoE Governor Mark Carney earlier this month pledged to keep UK interest rates low until unemployment falls to 7 percent, which the central bank sees as unlikely for another three years.
Improving economic conditions have cast doubt on that timetable and helped sterling gain more than 2.5 percent against the dollar and around 2 percent against the euro this month.... Read the full, comprehensive news article and discuss at Business ReportSimilar Stories