Pound strengthens against US dollar and euro as traders reduce bets on Bank of England interest rate cut.

Both the pound against the dollar and the euro have risen by 0.5% due to the currency market lowering bets on a rate cut by the Bank of England. Earlier, Bank of England decision-maker Megan Greene warned that a decrease in US interest rates would push up inflation in the UK. The pound against the dollar rose by 0.5% to 1.3569, its highest since September; while the euro against the pound fell by 0.5% to 0.8661. Swaps contracts show that traders expect the Bank of England to cut interest rates by 36 basis points this year, lower than the 41 basis points from Thursday.