LONDON: Sterling rose against the US dollar but fell to a one month low versus the euro on Tuesday after data showed the jobless rate rose in the three months to April, bolstering prospects that the Bank of England will continue to raise interest rates.
Britain’s jobless rate rose for the first time since late 2020, with official data showing it edged up to 3.8% in the three months to April from 3.7% for the three months to March.
The BoE is expected to raise interest rates again on Thursday
Britain’s growth, however, is already expected to be among the weakest for rich countries in 2023, and there is uncertainty over how fast the BoE can raise interest rates this year to tame inflation without further hurting the economy.
Sterling rose 0.3% against the US dollar to $1.2168 at 0820, after touching a two-year low on Monday. Versus a strengthening euro, it fell 0.3% to 86.02 pence, touching a one-month low against the single currency.
Sterling hits 2-year low