Economic news

Pound trades near $1.28 after unexpected UK unemployment fall

The pound briefly jumped above $1.28 on Tuesday on a broadly weaker dollar and after an unexpected drop in Britain’s jobless rate pushed a struggling currency above 13-month trough hit last week.

Photo: Reuters

The British currency extended its rise to as high as $1.2827, away from last week’s 13-month weak point of $1.2723. It advanced versus the euro, up 0.4 percent at 88.965 pence before erasing those gains.

Britain’s jobless rate slumped to its lowest level since 1975 during the second quarter and productivity accelerated, according to fresh figures.

However, weak annual salary growth - at a nine-month low of 2.4 percent and below forecasts of 2.5 percent - offset the positive employment figures and sterling reversed its gains.

Sterling slumped steeply last week after a stronger dollar and worries over the state of UK talks with the European Union over a future trade relationship combined to hit the pound.

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