Pound rises on growing consumer confidence

Sterling has strengthened against the dollar as a report revealed UK consumer confidence increased in March from record lows, boosting the Bank of England's case for an interest rate hike.

The pound gained 0.2% to $1.6304 as of midday, Bloomberg reports. It reached $1.6428 on 8 March, the highest level since January 2010. A sentiment index increased to 44, from 39 in February, which was the lowest since records began in 2004, according to Nationwide Building Society. A government report released yesterday revealed UK unemployment fell, despite the number claiming jobless benefits rising last month. UK government bonds also rose, with the 10-year bond yield falling four basis points to 3.67%. The two-year yield was three basis points lower at 1.23%. Around £2bn of ...