Speculation about a weaker-than-expected economic recovery not meriting an interest rate increase pulled down the English pound on Friday against the world's reserve currency, Bloomberg reports.
The pound pushed to its top value against the greenback since the beginning of January earlier this week. The pound's poor performance on Friday continued the monetary unit's weekly losses against the dollar. Policy makers with the Bank of England are unlikely to slash interest rates until the metric drops.
"A combination of firm growth and falling joblessness will result in the Monetary Policy Committee responding by raising rates earlier than implied by its current guidance," chief economist Philip Shaw with Investec told Reuters on Friday.
The English pound dropped 0.3 percent against the world's reserve currency on Friday after pushing to its top rate since January 2 on Tuesday.
England's jobless rate is 7.7 percent and Bank of England governor Mark Carney has said that he and policy makers with the body are highly unlikely to cut interest rates until unemployment falls lower than 7 percent, according to Reuters.
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