The pound rose against the dollar, euro and yen during European foreign exchange trading hours yesterday (September 23rd) on the back of positive of economic forecasts from the Bank of England.

Ahead of the publication of the minutes of the September meeting of the Monetary Policy Committee (MPC), FX Street had forecast that sterling would see upward resistance in trading against the US dollar.

However, by the end of regular trading hours, the pound had climbed to the upper region of the foreign exchange analysis site's expected trading range and was selling at $1.6423 by midday in New York.

The Financial Times reported that the steady rally offset the damage done to sterling last week amid speculation that the Bank of England would look to cut interest rates on commercial bank deposits in a bid to stimulate lending among the UK's major financial institutions.

The minutes assuaged this concern and also revealed harmony in the MPC, with unanimous votes cast in favour of maintaining quantitative easing at £175 billion and keeping interest rates at 0.5 per cent.