LONDON: Sterling rose on Friday and was set for its biggest weekly gain against both the dollar and the euro since May, boosted by a combination of dollar weakness and expectations that the Bank of England will raise rates this year.
The dollar was heading for a weekly decline and the Japanese yen sunk to a three-year low, as global risk appetite rebounded.
At 1515 GMT, the pound was up 0.6% against the dollar at $1.3759, having hit its highest in a month and on track for its biggest weekly gain since May.
It was also up around 0.6% versus the euro, having touched its strongest level since February 2020 at 84.275 pence per euro.
Against the yen, the pound rose to its highest since 2016.
Simon Harvey, senior FX analyst at Monex Europe, said that the move in sterling was prompted by dollar weakness and investors covering their dollar short positions.
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