Pound nears three-year high against US dollar
STERLING neared a three-year high against the dollar yesterday, boosted by weaker than expected US data.
The pound rose by nearly a cent to $1.6673, its highest level since May 2011. Disappointing retail sales during January’s bad weather led analysts to cut their forecast for US growth in the first quarter, dragging down the dollar.
US retail sales fell 0.4 per cent between December and January, against expectations for a flat month. Initial jobless claims also came in higher than expected, with 339,000 new applications for unemployment benefits in the week to 8 February, while 9,000 fewer were predicted.