Sterling rises, gilts fall after better-than-expected UK data

LONDON, March 21 (Reuters) - Sterling rose to three-week high against the dollar and a five-week high versus the euro on Thursday after better-than-expected British retail sales data and an improvement in the country's public finances.

The pound rose to as high as $1.5205, its highest since Feb. 28, up 0.7 percent on the day against the dollar. Reported option barriers at 1.5200 could keep sterling pinned around these levels.

The euro slipped to 84.925 pence, its lowest since Feb. 11 and was down 0.8 percent on the day.

June gilt futures extended losses sharply and were last 30 ticks down on the day at 117.29, having stood at 117.41 shortly before the data came out.

The FTSE 100 benchmark equity index pared losses after the publication of the UK retail sales figures. The index had been down 0.7 percent before the figures were released but then recovered slightly, trading down 0.6 percent at 6,391.31 points.

(Reporting by London Markets Team; editing by Nia Williams)

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Keywords: FOREX MARKETS/STERLING