The pound rose against the dollar for the first time in almost a week on Wednesday, in line with a retreat in the U.S. currency, and after a survey showed UK business activity was less subdued than initially feared in September.
The final reading of S&P Global UK Services Purchasing Managers' Index (PMI) fell in September to 49.3 from 49.5 in August, further below the 50 threshold for growth.
The reading was an eight-month low, but it topped a preliminary reading of 47.2 that shocked investors earlier in September.
The final PMI included responses from companies surveyed from Sept. 20 to Sept. 27 - days after data showed British inflation fell unexpectedly in August, as well as the Bank of England's surprise decision to leave interest rates unchanged on Sept. 21.
Sterling was last up 0.4% on the day against the dollar at $1.2123, having fallen for the last three trading days, although the rise in U.S. government bond yields meant this strength could be short lived.
The pound gained 0.1% against the euro to trade at 86.63 pence, but remained in sight of late September's four-month lows around 87 pence.
Source : Reuters
