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Pound close to 3-year high against dollar

Currencies Direct February 13th 2014 - < 1 minute read

Sterling pushed towards a three-year high against the dollar
after the Bank of England’s upbeat assessment of the UK
economy.

The pound gained roughly two cents on the dollar, with GBP/USD
trading at 1.6613, close to a level the
exchange rate
has not seen since April 2011.

Sterling was sent higher after the BoE upgraded its
forecast
for 2014 economic growth to 3.4 per cent, while also
updating its forward guidance on rates, hinting that the benchmark
interest rate could rise in 2015.

The pound was also higher against the euro, with EUR/GBP down
roughly one per cent. A pound bought €1.22, close to the highest
level for sterling since December 2012.

Elsewhere, the Swiss franc and Japanese yen gained on their
major currency peers as declines in Asian equities spurred safe
haven demand.

USD/JPY was trading down 0.4 per cent on Thursday morning
(February 13th) at 102.14, while USD/CHF slid by a similar margin
to 0.8971.

The Australian dollar, meanwhile, gave back much of its recent
gains after lacklustre jobs data.

AUD/USD was down nearly one per cent at 0.8949, while
GBP/AUD
was up more than 1.1 per cent to trade at 1.8586, a
level not seen since the beginning of January.

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Written by
Currencies Direct

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