Pound strong against dollar but may lose ground
The pound performed strongly on Thursday after the Bank of England's monetary policy commitee (MPC) announced that the base rate would be increased to 5.75 per cent.
Trading against the US Dollar stayed near a 26-year high, peaking at 2.0207, the highest level since June 1981.
However, speculation exists that the British currency may lose ground against the dollar on the back of expectedly strong data from the US on Thursday.
Reports showed that the American jobs market was stronger that had been predicted, with pronounced growth in the service industry sector.
Adam Cole, currency strategist at Royal Bank Scotland, told Bloomberg that the US results "might put some pressure on the pound".
Trading against the Euro was steady, the pound hovering around 67.60 as it has done since mid-week.
According to the MPC, inflation is still riding high and further increases in the base rate may be required to bring it in line.