Sterling rose one percent on the day against the dollar on Tuesday, propelled by strong UK manufacturing numbers and a broader dollar retreat ahead of the FOMC meeting later in the day. The UK manufacturing sector showed strong expansion in April, according to data collected by the Chartered Institute of Purchasing and Supply and . The purchasing managers' index rose to 55.1 in April, compared to 53.8 in March and the consensus forecast of 54.0, supporting expectations of an interest rate hike on Thursday. "We had an extremely strong PMI survey and that triggered buying," said Adrian Hughes, currency strategist at HSBC in London.
"Historically, sterling is very quiet in the rate-decision week so if you get strong numbers like that spot moves can be erratic." By 0855 GMT sterling rose more than one percent from the previous day's close to $1.7892 . It was also slightly stronger on the day versus the euro at 67.23 pence .///