Sterling on track for third weekly profit in row

Sterling rose in European trade against dollar, resuming the gains once more and on track for five-week highs and the third weekly profit in a row on prospects of a UK rate hike. 

GBP/USD rose 0.1% to 1.3809, with an intraday low at 1.3781, after closing down 0.25% yesterday, the first loss in three days on profit-taking away from five-week highs at 1.3835. 

Sterling is up over 0.5% so far this week on track for the third weekly profit in a row on UK rate hike prospects.

The prospects were bolstered by recent bullish remarks by Bank of England on countering the increased inflationary risks in the country.

The weekly gains come amid expectations Bank of England will be the first follow the Federal Reserve in tightening monetary policies.