FX : British Pound Climbs As U.K. Services Data Improve
CURRENCIES: British Pound Climbs As U.K. Services Data Improve
By Lisa Twaronite
The British pound advanced Thursday as economic data showed the U.K. services sector growing more rapidly than had been anticipated last month.
The CIPS/Markit index for U.K. services purchasing managers rose to 54.1 in August from 53.2 in July, climbing to the highest reading in nearly two years.
Higher activity was supported by solid gains in new business alongside work on existing contracts, with backlogs falling at a steep and accelerated rate, it said.
The news sent the pound to $1.6383, up from $1.6264 late Wednesday.
Meanwhile, the euro also rose against the dollar, as investors awaited the European Central Bank's latest interest-rate decision, expected at 7:45 a.m. Eastern time.
The euro was buying $1.4311, up from $1.4274 late Wednesday.
The ECB isn't expected to move euro-zone interest rates from the present 1%.
In early Tokyo trading, the dollar slipped as low as 91.92 yen, as investors sought the perceived safety of the lower-yielding Japanese currency.
But the greenback later erased the weakness to trade at 92.38 yen, above 92.21 yen in late North American trading Wednesday.
The dollar index (DXY), which measures the U.S. currency against a basket of six major counterparts, stood at 78.27, down from 78.339 late Wednesday.
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