Sterling hits best rate in month versus the dollar

The pound rose to its strongest level in a month against the dollar as the fastest increase in Britons’ wages since 2011 had traders rushing to reassess how soon the Bank of England may raise interest rates.

Sterling extended its gains into a seventh day versus the euro, the longest streak since March, after the 2.7% annual increase in average weekly earnings surpassed analyst estimates and pointed to tightening labour conditions.

With the Bank of England saying at the same time that factors holding back the economy were fading, investors brought forward bets on the first increase in central-bank rates by two months to June next year.