LONDON, July 13 Reuters The pound rose for the sixth session running to a new 15month high on Thursday after data showed the British economy shrank by less than expected in May.

Figures showed the economy contracted 0.1 in May, after growth of 0.2 the previous month. Economists expected a contraction of 0.3.

Sterling rose to 1.3061, its highest since April 2022, and was last up 0.51 to 1.3057.

The euro slipped 0.19 against the pound to 85.54 pence, not far off the 11month low of 85.05 pence touched on Tuesday.

The UK as well as most of Europe defied widespread expectations, including ours, that it would fall into recession over winter, said Kallum Pickering, senior economist at Berenberg, in emailed comments.

Britain39;s currency has been on a tear against the dollar in recent days as investors have wagered that the Bank of England will have to keep raising interest rates while the U.S. Federal Reserve is close to stopping.

Expectations of higher interest rates in a country tend to boost its bond yields, making them look more attractive and boost the domestic currency.

The pound rallied 0.45 on Wednesday as the dollar plunged in the wake of data which showed that U.S. inflation rose 3 yearonyear in June, the smallest increase since March 2021.

Data on Tuesday showed that British wages rose at the joint highest rate on record in the three months to May, keeping the pressure on the BoE.

The dollar index was down 0.23 on Thursday to 100.38, after dropping 1.07…