Sterling falls below $1.60 as jobs data brings US rate hike nearer

The pound dropped to its lowest rate against the dollar in almost a year this afternoon after the US unemployment rate fell below 6%, triggering a further rally for the dollar.

After disappointing employment growth for August, US employers added a higher-than-forecasted 248,000 jobs in September, according to the Bureau of Economic Analysis. August's figure was revised up from 142,000 to 180,000, with July's revised from 212,000 to 243,000. The jobless rate fell to 5.9%, the lowest level since July 2008, increasing expectations of an earlier-than-expected US rate hike. The dollar surged against both sterling and the euro on the news, pushing the pound below the $1.60 mark for the first time since November 2013. Gold, meanwhile, fell below $1,200 a troy...