• Sterling down 0.1 percent at $1.4713
• UK inflation seen easing from April’s peak
Sterling eased on Tuesday from one-month peaks hit against the dollar the previous day, but the currency retained support as the market sought direction from inflation data due out shortly. Economists expect UK inflation to have slowed to 3.5 percent year on year in May from 3.7 percent in April, keeping it above the Bank of England’s 2 percent target for a sixth month running. While the BoE has said it expects the spike to be temporary and thus is expected to make no quick change to its extremely loose monetary policy, concerns about the rate of inflation have been growing among some policymakers.
Andrew Sentance, one of the hawks on the nine-member Monetary Policy Committee, said this weekend the resilience of inflation so far raised the issue of how long a highly expansionary monetary policy would remain appropriate. A higherthan-expected reading in the inflation data may spur the pound higher, analysts said. The data is due out at 0830 GMT.
At 0721 GMT, the euro was down 0.2 percent at 82.71 pence. Against the dollar, the pound was little changed on the day at $1.4713, having risen as far as $1.4810 on Monday, its highest since mid-May.
Earlier, a survey by the Royal Institution of Chartered Surveyors showed British house prices rose last month at their fastest rate so far this year.
Exchange Rates:
GBP – EUR: 1.2100 GBP – JPY: 135.32 CAD – USD: 0.9703
GBP – USD: 1.4765 EUR – USD: 1.2231 GBP – ZAR: 11.346
GBP – AED: 5.424 EUR – JPY: 112.10 AUD – USD: 0.8598
GBP – CHF: 1.6920 EUR – AUD: 1.4312 GBP – NZD: 2.1355
GBP – AUD: 1.7296 EUR – NZD: 1.7670 GBP – CAD: 1.5256
JPY – USD: 0.0109
The rates above are for indication purposes only. Price can vary dramatically based on amount and delivery date.
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