Pound ster­ling jumps to six-week high ver­sus ring­git

The Star Malaysia - StarBiz - - News -

KUALA LUMPUR: The pound ster­ling jumped to a six-week high against the ring­git on Fri­day on ex­pec­ta­tions that the Bank of Eng­land (BoE) would have to raise in­ter­est rates in com­ing months.

At 5pm, the pound was up 2.2% to the ring­git at 5.6705 from 5.5485 the pre­vi­ous day.

The BoE might need to hike in­ter­est rates in the com­ing months, ac­cord­ing to the rate-set­ter who was pre­vi­ously most strongly in favour of keep­ing bor­row­ing costs at their record low, Reuters re­ported.

The com­ments from Gert­jan Vlieghe on Fri­day came a day af­ter the BoE said a ma­jor­ity of its nine pol­i­cy­mak­ers be­lieved a rate hike in the com­ing months was likely, if in­fla­tion pres­sure con­tin­ued to build in the econ­omy. The wire re­port also said the pound hit a 14-month high against the dol­lar on Fri­day and was head­ing for its best week in more than eight years on a trade-weighted ba­sis. Traders were stack­ing up bets on a near-term in­ter­est rate rise from BoE.

Ster­ling drew re­newed fo­cus from in­vestors this week: on Thurs­day it en­joyed its big­gest surge against the dol­lar since April af­ter the Bank of Eng­land said it was likely to raise record-low in­ter­est rates in the com­ing months, Reuters re­ported.

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