The pound rose on Tuesday, after data showed wages in Britain are growing far more quickly than expected, heaping pressure on the Bank of England to raise rates, which in turn pushed the government's borrowing costs to their highest since 2008.

Data from the Office of National Statistics (ONS) on Tuesday showed UK wages in the three months to April grew at their fastest pace on record, excluding during the pandemic, at a clip of 7.2%, after an increase in the national minimum wage.

British two-year gilt yields hit as much as 4.84%, their highest since the 2008 financial crisis on Tuesday, surpassing the peak in September under Britain's shortest-serving Prime Minister Liz Truss following her largely unfunded mini-budget.

Meanwhile, the pound rose by as much as 0.52%, before retreating to $1.257, showing a 0.45% gain on the day.

Source : Reuters