During European morning trade, the pound strengthened against the dollar, with GBP/USD rising 0.30% to 1.5778, after rising as high as 1.5826 earlier, the highest level since February.
The Office for National Statistics said the rate of unemployment in the U.K. ticked down to 7.7% in July from 7.8% in June. Economists had expected the unemployment rate to remain unchanged.
Last month, the Bank of England pledged to keep interest rates on hold at current record low levels until the unemployment rate falls below 7%, something that bank does not see for another three years.
The ONS said the number of people claiming unemployment benefits fell by 32,600 in August, better than expectations for a decline of 22,000 people.
The dollar edged lower against the yen, with USD/JPY slipping 0.12% to 100.26.
Demand for the traditional safe haven yen was hit after President Barack Obama agreed Tuesday to explore a plan proposed by Russia for Syria to place its chemical weapons under international control in order to avoid a U.S. military intervention.
Elsewhere, the euro was almost unchanged against the dollar, withEUR/USD inching up 0.05% to 1.3273.
The dollar slipped lower against the Swiss franc, with USD/CHF sliding 0.10% to 0.9340.
Elsewhere, the greenback was steady against its Australian, New Zealand and Canadian counterparts, with AUD/USD inching down 0.08% to 0.9305, NZD/USD edging up 0.04% to 0.8071 and USD/CAD slipping 0.07% to 1.0341.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.07% to 81.76.
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