Sterling falls to bottom driven by inflation report

Posted 18 April, 2018

The sterling has touched the session's bottom on Wednesday given a year-low inflation rate recorded in March which makes interest rate upturn by BOE less possible in May.

The sterling to US dollar exchange rate was seen at 1.4209 (1.4275 earlier). In the pair with the European currency, the sterling slackened as well – euro reached some 0.8711.

According to the UK Office for National Statistics, the March inflation slowed down to 2.5% in March, against 2.7% in February. As a result, this was the lowest rate over the past year – forecasts were voiced at 2.7%.

The core inflation was slower at 2.3% y-o-y over the period under review, compared to 2.4% increase in February and anticipated hike to 2.5%.

With slower inflation coming closer to BOE's target, the interest rate lift expected in May seems to become less real.

The March figures confirmed that the cost of living decreased in the UK. Specifically, the average salary in the country rose to 2.8% in December-February, as the data showed. This means that the increase in salaries was above the inflation rise for the first time over the year.

Previous story

19 April, 2018 14:58

← US dollar somewhat rebounds on Thursday

US dollar posted some gains on Thursday amid slacker sterling affected by the weak retail report. The US Dollar index reached some 89,40 today. US dollar to yen exchange rate went up to 107.41. The greenback has been depressed by trade tensions lately. Investors, in their turn, choose Japanese yen for investing as a safe haven when seeing...

US dollar somewhat rebounds on Thursday

Next story

17 April, 2018 18:00

Korean Blockchain Association makes motion of regulation for crypto platforms →

The Korean Blockchain Association that was established last year suggested self-regulation rules striving to set up standards for crypto platforms. The proposal includes minimal charter capital up to KRW 1.8 billion ($1.8 million) and mandatory financial reports regular auditing on the platforms.

Korean Blockchain Association makes motion of regulation for crypto platforms
Write a comment
Prove you’re not a bot + 10 = 15