THE pound rose to an 11-week high versus the dollar after a report showed UK manufacturing shrank less than economists predicted last month, weakening the case for more money printing at the Bank of England.
Sterling snapped a two-day drop against the euro. A gauge of factory output rose to 49.8 from 48.6 in March, Markit and the Chartered Institute of Purchasing and Supply said yesterday in London.
Economists had forecast a reading of 48.5, according to the median of 28 estimates in a Bloomberg News survey. UK house prices were little changed in April, Nationwide Building Society said yesterday.
"It was a better reading than anticipated and it continues the theme of a slight improvement," said Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce in London. "Over the course of the last few sessions we have been grinding higher in sterling. For now, it's a more constructive backdrop."
The pound gained 0.3pc to $1.5572 in early London trading, after climbing to $1.5591, the most since February 13. It appreciated against the greenback for a sixth-straight day. Sterling was little changed at 84.73p per euro. It was at 83.98p on April 26, the strongest since January 24. (Bloomberg)
