Bank of England policymaker Gertjan Vlieghe told the Treasury Committee in Britain's parliament that policy rates are set to rise 25 to 50 basis points every year over a three-year forecast period, a comment interpreted by currency markets as supportive for the British currency.

Sterling extended gains and rose to the day's highs at $1.3492, up 0.4 percent and climbed 0.2 percent to one-week high against the euro at 87.60 pence.