Pound Rises Versus Euro as Yellen Revives Policy Tightening View
- Sterling climbs from one-month low against shared currency
- U.K. government bonds set for biggest drop in a month
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The pound strengthened for the first time in four days against the euro after Federal Reserve Chair Janet Yellen said the U.S. central bank was on course to raise interest rates this year, boosting speculation the Bank of England will follow.
Sterling rose from a one-month low versus Europe’s shared currency as Yellen firmly placed herself in the camp of those Federal Open Market Committee officials who favor the Fed increases its benchmark interest rates from record lows in 2015. U.K. 10-year government bonds were set for the steepest decline in a month as BOE policy maker Ian McCafferty said it was time for the process of rate normalization to begin.