Sterling extends gains vs dollar, euro on cbank comments

LONDON: Sterling strengthened against a broadly strong euro and a struggling dollar on Tuesday after a top central bank official struck an upbeat note on the outlook for future interest rate increases.

Bank of England policymaker Gertjan Vlieghe told the Treasury Committee in Britain's parliament that policy rates are set to rise 25 to 50 basis points every year over a three-year forecast period, a comment interpreted by currency markets as supportive for the British currency.

Sterling extended gains and rose to the day's highs at $1.3492, up 0.4 percent and climbed 0.2 percent to one-week high against the euro at 87.60 pence.