Share

Pound falls as traders await UK inflation data

London - The pound fell before a report economists say will show that the UK’s annual inflation rate rose in June.

Sterling weakened versus most of its 16 major peers. UK consumer prices increased 0.4% last month from a year earlier, according to a Bloomberg survey of analysts. The Bank of England’s 2% inflation target was last reached in December 2013.

The central bank signaled last week it’s readying stimulus for August as the economy reels from Britain’s decision to quit the European Union. Minutes of the BoE’s July meeting showed most members of the Monetary Policy Committee expect policy to be loosened next month. Futures contracts indicate an 83% chance of a cut in August, compared with 14% on June 23, the day of the EU referendum.

The pound fell 0.3% to $1.3218 as of 7:28 a.m. London time. It dropped to a 31-year low of $1.2798 on July 6. The UK currency weakened 0.3% to 83.77 pence per euro.

Sterling climbed to a two-week high of $1.3481 on July 15, a day after the BOE unexpectedly left rates unchanged. Even so, it’s still the worst-performing Group-of-10 currency in the past month.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders