UK Pound Sterling Advances

The UK currency was up versus other major currencies on more buoyant signals of the country’s economic prospects.

Median wage growth increased to 2.1 percent (December) and surpassed inflation rates which dropped to 0.3 percent in January. It propelled the pound sterling nearly one percent higher to 73.64 pence for every one euro.

The pound is seen as safer bet compared to other currencies in the euro region given sustained growth and greater bond yields.

Positive data is expected to counterbalance concerns regarding deflation, according to brokers.

Analysts also contend that the sterling seems a very viable option for investment and pension managers apprehensive about negative proceeds on German and euro government bond yields.

The pound went up by ½ percent to $1.5434.

Elsewhere, the Japanese yen edged higher following the decision of the Bank of Japan to maintain a steady policy.

According to Central Bank Governor Haruhiko Kuroda, there was no pressing need to open out monetary stimulus as inflation was headed towards their goal of two percent. However, he stated that the BOJ can always change its course if the outlook for inflation changed.

The shared currency declined by one-third percent to $1.1374 while the yen traded generally flat at 119.29 yen for every US dollar.