//
According to Reuters, sterling advanced to $1.6180 after there was further speculation the Bank of England will up the interest rate by the middle of the year.
The monetary policy committee (MPC) is set to meet later in the week, although it is expected to keep the cash rate unchanged at a record low 0.5 per cent.
This comes after Martin Weale last week joined Andrew Sentance in the quest for a rate rise as he voted in favour of lifting the level.
Valentin Marinov, currency strategist at Citi, said: "We think that indications of growing concerns at the MPC about the near term inflation risks could still work in the pound's advantage."
What's more, on Friday afternoon the pound fell by 0.4 per cent against its US counterpart.
Posted by Greg Secker
