The pound may climb to its strongest level this year against the dollar should it end the week above $1.6320, according to CMC Markets.
The currency was helped by this week’s “robust” report on services activity and the Bank of England’s decision not to expand quantitative easing, Ashraf Laidi, chief market strategist at CMC Markets in London, wrote in an e-mailed report today. “A weekly close above $1.6310-20 would suggest prolonged gains toward $1.6460,” he wrote.
Sterling was the second-biggest gainer against the dollar among the 16 most-actively traded currencies today, rising 1.2 percent to $1.6274. It hasn’t traded above $1.6460 since December, when it reached $1.6722.
The Bank of England kept its bond-purchase program unchanged at 200 billion pounds ($325 billion) today and held its benchmark interest rate at a record low of 0.5 percent.