The pound rose the most in seven weeks after a report showed the U.K.’s economic expansion accelerated in the fourth quarter.
Sterling’s gain versus the dollar reversed a decline Wednesday which was the biggest in almost two weeks. Britain’s economy grew 0.5 percent in the final three months of 2015, compared with 0.4 percent in the third quarter, and matching the median forecast of analysts surveyed by Bloomberg.
The pound still headed for its third monthly decline versus the U.S. currency, having slumped to an almost seven-year low last week, weighed down by whipsawing financial markets and concern that the U.K. will vote to exit the European Union.
The pound rose 1.1 percent to $1.4390 at 4:13 p.m. London time, the biggest gain since Dec. 9, paring its monthly decline to 2.3 percent. The U.K. currency fell to $1.4080 on Jan. 21, the lowest since March 2009. Sterling gained 0.7 percent to 76.03 pence per euro, having weakened 1 percent a day earlier.