Sterling nears five-year high on strong manufacturing data

Sterling has risen above $1.69 against the US dollar during trading, nearing its highest level for five years following the release of strong manufacturing data for April.

Sterling hit $1.692 against the dollar this morning after the release of the data. That follows a move up by the sterling trade-weighted index which reached its own five-and-a-half year high earlier this week. Today's gains put the pound in sight of its five-year high of $1.69888, and marks its highest level since August 2009. Sterling has rallied as the improvement in the UK's economic outlook continues apace. Today the Markit manufacturing purchasing managers' index (PMI) - which indicates expansionary activity if the monthly reading is over 50 - rose from 55.8 to 57.3 in April. ...