Pound Rises to 2 1/2-Year High on Carney Vow to Hold Down Rates
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The pound strengthened to a 2 1/2-year high versus the dollar as jobless data that beat analyst expectations prompted the Bank of England governor to pledged keep down interest rates to support the recovery.
Sterling posted its biggest weekly jump against the greenback in a month even after Mark Carney said there is no “immediate need” for the BOE’s Monetary Policy Committee to increase borrowing costs and the currency’s strength may harm exports. A report on Jan. 22 showed the jobless rate fell to 7.1 percent in the three months through November, approaching the 7 percent threshold announced by Carney in August as the trigger for reviewing policy. Gilts advanced for a fourth week.