On Wednesday, the British pound surged to its highest level in over a year, exceeding $1.30. This increase came after the release of data indicating that UK inflation for the previous month slightly surpassed expectations.
According to official figures, the UK consumer prices index remained steady at 2.0 percent, which was higher than the anticipated 1.9 percent. This unexpected result propelled the sterling to reach as high as $1.3017 against the US dollar.
Concurrently, the US dollar has faced recent downward pressure following indications from officials that a slowdown in US inflation may prompt them to decrease interest rates in the near future.
In summary, the pound’s rise above $1.30 was driven by UK inflation figures that outperformed forecasts, while market expectations of impending interest rate cuts by the Federal Reserve have weakened the US dollar.
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