The pound sterling hit a 15-month high against the dollar on Thursday as data showed that wage growth in the UK accelerated in June. The average hourly wage rose by 4.8% year-on-year, which was the fastest pace of growth since 2008.
The strong wage growth data boosted expectations that the Bank of England will continue to raise interest rates in the coming months. The Bank of England is expected to raise rates by 50 basis points at its next meeting on August 4.
The pound sterling’s strength was also supported by the weakness in the dollar. The dollar weakened as inflation data for June missed expectations.