LONDON: Sterling rose to a two-week high versus the euro and pared losses against the dollar on Wednesday after a better-than-expected purchasing managers' survey on the UK services sector.
The Markit/CIPS Purchasing Managers' Index (PMI) for the services sector rose to 55.3 in March, its highest level since January and up from 53.8 in February.
The euro fell to 82.90 pence, its weakest since March 19, from around 83.00 before the data. This left it on track to target 82.83 pence, below which would mark a seven-week low.
Against the dollar the pound edged up to around $1.5908 from $1.5895 beforehand.
Following PMI surveys showing unexpectedly solid growth in manufacturing and construction, the strong services sector data will ease concerns about the risk of a UK recession and lessen the chances of the Bank of England opting for further stimulus.
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