Economic news

Pound dips to one-week trough on weak inflation

The pound slumped to a one-week nadir on Wednesday as fresh inflation figures failed to inspire investors that the Bank of England would increase interest rates in August, while Brexit talks still weigh on the market.

Photo: Reuters

Sterling dropped to $1.3322, its weakest level since June 5. Versus the euro, the British currency lost 0.2 percent at 87.99 pence.

Consumer price inflation remained at 2.4 percent in May for the second month, according to the fresh data from the Office for National Statistics.

Since surging to an overnight peak of $1.3424 after 15 amendments to the EU (Withdrawal) Bill, the pound lost almost 1 percent.

The political uncertainty, key economic figures and major central banks policy meetings kept traders on the sidelines.

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