The pound edged higher on Tuesday after British wages excluding bonuses grew by more than forecast in the final three months of 2023 and the unemployment rate dropped to 3.8%.

The pound was last up 0.1% against the dollar at $1.2640, having briefly risen to its highest since Feb. 2.

Sterling was also trading at 85.25 pence per euro, up around 0.1%.

(Reporting by Samuel Indyk; Editing by Amanda Cooper)