Sterling hits seven-month high as jobs data adds to BoE rates stand-off

Sterling has risen to a seven-month high against the dollar after the UK's unemployment rate unexpectedly dipped from 7.8% to 7.7%.

The figures, released this morning by the Office for National Statistics, beat expectations that the headline rate would remain unchanged. With the Bank of England having said earlier this summer it would consider raising interest rates once unemployment fell to 7%, sterling strengthened to $1.5824 against the dollar on today's news. That represented the highest level in dollar terms since February. Sterling also rose to an eight-month high against the euro of €1.1925. The rise was accompanied by a further jump in benchmark gilt yields, with ten-year yields rising to 3.04%, an eigh...