Sterling returns lower as dollar steams ahead

Sterling halted its recent rally abruptly on Friday after touching a four-week high yesterday, as the dollar muscles ahead, ending off a streak of painful losses that the green currency suffered from this week. 

GBP/USD last traded at 1.4496, down from the opening level of 1.4580, with an intraday low at 1.4455. Sterling hit a four-week high yesterday at 1.4671.  

Sterling's sharp losses come about as dollar regains its shine, reversing higher after tumbling to a four-month low earlier against an array of rival currencies. 

The U.S. jobs reports came out today showing a fall in the unemployment rate to an eight-year low, despite a slowdown in new jobs in January. 

The strength of the jobs sector in the U.S. buoyed the dollar against its counterparts, and raised expectations anew that the Federal Reserve will stick to its gradual path of rate hikes this year. 

On another note, Bank of England signaled yesterday the necessity of keeping interest rates unchanged for a longer period of time, with inflation expected to remain below 1% this year. 

The dollar index, which measures the U.S. currency against a host of major rivals, traded last at 97.07, up from the opening of 96.59, with a session-high at 97.26, and a low at 96.26. The index slumped to a four-month low yesterday at 96.25.