Sterling fell on Wednesday, following a bigger-than-expected rise in consumer price inflation in Britain and fears of a deeper recession in the country fueled expectations that the Bank of England’s interest rate hike in November would be less severe. The yen rose from the lowest point in two weeks once morest a basket of major competing currencies, supported by expectations that the Federal Reserve will raise interest rates by a large percentage.
The British pound fell 0.57 percent at 11:00 GMT, to 1.12570 per dollar, following data showed that consumer price inflation in Britain rose to 10.1 percent on an annual basis in September, which means that it increased more than expected and returned to its highest level in 40 years. in July. The dollar rose 0.2 percent to 149.61 yen for the first time since August 1990.
As for the dollar index, which measures the performance of the US currency once morest a basket of six major currencies, it rose 0.7 percent to 112.74 following falling to its lowest level since October 6, recording 111.76 on Tuesday. The euro fell 0.8 percent to $0.97800, retreating from yesterday’s high of $0.98755, a level not seen since October 6.
The New Zealand dollar remained at a high level, gaining 2 percent this week, following bleak consumer price data released on Tuesday raised expectations that the central bank would continue to tighten monetary policy.
The New Zealand dollar was trading in the latest trading, down 0.16 percent at $0.56770, which is close to a two-week high, which was recorded on Tuesday at $0.5719.
