The pound touched a fresh 2018 trough on Wednesday after UK inflation unexpectedly fell in April, triggering doubts on whether the Bank of England will increase interest rates this year.
The British currency tumbled 0.6 percent to $1.3347, its nadir since Dec. 21.
The annual change in the consumer price index slowed to 2.4 percent, its weakest rise since March 2017.
Concerns over Brexit and a recent sluggish economic numbers mean markets are now not widely expecting a full 25-basis-point hike by the end of 2018. In May, the BoE kept interest rates steady though rate increase had at one point been widely anticipated.