Sterling hits 15-month high as high wage growth heaps pressure on the BOE

The pound rose to a 15-month high against the dollar on Tuesday after data showed pay growth exceeded expectations, adding to pressure on the Bank of England to keep raising interest rates.

British wages excluding bonuses were 7.3% higher in the three months to May than a year earlier, figures from the Office for National Statistics showed on Tuesday. Economists polled by Reuters had forecast a 7.1% rise.

Sterling rose 0.3% against the dollar to $1.2899, touching its highest level since April 25 last year.

The euro fell 0.1% against the pound and last bought 85.43 pence.