The monetary unit of England rose toward its top value in more than four years against the world's reserve currency on Wednesday after economic data noted the regional jobless rate through February dropped more than analysts expected, according to Bloomberg.
The pound climbed against each of its top 16 rival currencies, after the unemployment rate fell beneath the 7-percent threshold cited by governor Mark Carney with the Bank of England as the key measure that must be reached before the body considers boosting borrowing costs. The labor market data is the latest indication noting the U.K. economy is strengthening.
"The unemployment data is pretty encouraging and we like sterling from here," foreign-exchange strategist Josh O'Byrne with Citigroup Inc. in London told the media outlet on Wednesday. "This opens up the possibility that the Bank of England may need to raise interest rates sooner than the market is expecting, which could spur on the sterling rally."
The English pound climbed about 0.4 percent against the U.S. dollar, pushing to its top level since November 2009.
Currency Watch reports officials with the Bank of England are keeping a close eye on gains for the rate of pay.
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