The pound was set for a weekly advance against the dollar as the prospect of tighter monetary policy in the U.K. combined with pared bets for U.S. rate rises.
Sterling, which touched a one-week high on Friday, has stayed relatively well supported in the face of U.K. economic data missing forecasts and uncertainty related to Brexit. That comes after some Bank of England policy makers called for a move away from stimulus and higher interest rates. The British currency climbed versus a broadly weaker dollar, as U.S. headline inflation data due on Friday is seen slowing, and after Federal Reserve Chair Janet Yellen signaled on Wednesday the central bank won’t rush to tighten monetary policy.
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