Sterling closes at a six-month high against US Dollar

Sterling rose sharply against the US dollar yesterday to close at a six-month high. It finished at 1.6589, up 2.33 cents (1.42%) on the day.

• In early trading yesterday, sterling resumed its rise against the greenback as risk appetite continued to improve following solid gains on stocks and oil prices. The FTSE 100 eventually finished the day up 25.12 points (0.57%).
  
• Two polls showing rising UK inflation expectations and possible economic growth in April also aided the pound’s gains mid-morning. These surveys were just the latest in a string of more positive data out recently which have bolstered the view that the UK economy may be recovering.
  
• In trading so far today, sterling has pared some of the gains it made yesterday as investors continue to assess the data out this week.
  
• There are no major announcements due in the US or UK today.