The Great Britain pound rallied yesterday as Monetary Policy Committee member Martin Weale talked about a potential increase of interest rates. The currency kept most of its gains versus the US dollar but retreated against the Japanese yen today.
Weale said in an interview to the Reading Post that interest rates should not remain low indefinitely and will rise as the economy normalizes. He explained:
While my best guess is any rises will be relatively gradual, the committee canât give any guarantees about where interest rates will be in the future because, fairly obviously, itâs not possible to say what will happen in the future.
The sterling rose on the comments but had hard times keeping gains against the yen as the Japanese currency was strengthening on concerns about rising tensions between Russia and Ukraine.
GBP/USD climbed from 1.6528 to 1.6580 yesterday and traded at 1.6572 as of 1:34 GMT today. GBP/JPY slipped from 169.16 to 168.88.
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