The English pound neared its top value in five-plus years against the world's reserve currency on Thursday amid central bank efforts to address the regional housing market, according to Bloomberg.
The Financial Policy Committee of the Bank of England proposed limiting the proportion of mortgages to 4.5 times income to no higher than 15 percent of the value of new home loans. Mark Carney, governor of the central bank, said a few weeks ago that increasing mortgage debt is increasingly perilous for the regional recovery. Bonds issued by the government of the U.K. endured their first losses in four days on Thursday.
"Sterling gained some support because the measures are in line with indications we got from Carney that the FPC's approach would be slow and gradual," head of European currency strategy Ian Stannard with Morgan Stanley in London told the news outlet on Thursday.
The pound climbed about 0.3 percent against the U.S. dollar on Thursday.
Reuters reports Carney said the likelihood is low that new proposals unveiled by the central bank will have dire impact on policy makers decisions regarding issues before them.
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