Sterling on track for second weekly profit in row

Sterling rose in European trade against dollar for third straight session, and on track to hit three-week highs touched yesterday, and the second weekly profit in a row. 

GBP/USD rose 0.4% to 1.3728, with a session-low at 1.3667, after closing up 0.1% yesterday, the second profit in a row, marking three-week highs at 1.3734. 

The dollar index fell 0.15% on Friday for the third straight session against a basket of major rivals. 

Dollar's decline came after latest Fed's minutes showed continued division among policymakers on the size of threat posed by increasing inflation, and the need to raise interest rates in response. 

Sterling is up 0.8% this week, on track for the second weekly profit in a row on expectations the Bank of England will tighten its policies following the Fed's lead.

The expectations came as the UK economy continues to grow solidly this year alongside inflation rates.