Sterling bounced back to hit the day’s high against the dollar on Friday, after Bank of England Governor Mark Carney reiterated that the next move in interest rates is likely to be up.
The pound rose to $1.4870 after the comments, compared with $1.4818 beforehand, to turn slightly higher on the day. It was up 0.7 per cent against the euro, trading at 72.83 pence.
Sterling has been hit in the past week by dovish comments from BoE Chief Economist Andy Haldane, who said rates could be cut if inflation stays subdued in Britain. The currency has also been weighed down by uncertainty ahead of parliamentary elections in May.