Economic news

Pound at two-week peak on broadly weaker dollar

The pound advanced to more than two-week top on Thursday, buoyed by broadly dollar weakness due to an extending rally in the European single currency, though worries over Brexit talks limited gains.

Photo: Reuters

The British currency traded at $1.3472 a dollar in early trading, its top since May. 22 as the greenback’s recent rally lost its steam. Versus the euro, it was virtually unchanged at 87.81 pence.

Economic figures this week, including a widely anticipated survey of the prevailing services sector on Tuesday, signaled weaker economic expansion in the first three months of the year was temporary and the economy is growing.

Markets would also need to digest more than one month of impressive economic numbers before betting the BoE to increase interest rates. Investors are now pricing in a 60 percent chance of a 25 basis point rate hike in September.

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