Economics
Pound Strengthens Versus Euro, Dollar Amid BOE Rate Speculation
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The pound reached a 21-month high versus the euro this week as speculation the Bank of England will tighten policy in contrast to the European Central Bank boosted the relative allure of the U.K. currency.
Sterling climbed to the highest since 2008 against the dollar, posting the longest run of weekly advances in more than 1 1/2 years, as reports showed manufacturing and construction growth accelerated in June. The data adds to signs of a strengthening economy and bolsters the case for the BOE to consider raising interest rates. The ECB pledged Thursday to keep borrowing costs low. U.K. government bonds declined, with two-year gilt yields touching a three-year high.