The British pound trailed close to 7-½ year peaks Wednesday following it garnered support from speculations the Bank of England will begin interest rate hikes early next year.
Traders believed a higher UK core inflation and remarks from outgoing policymaker David Miles, who indicated a rate increase would happen soon, have bolstered the currency.
Sterling ended at 70.52 pence per euro. Versus the US dollar, the currency closed at $1.5655.
The inflation data, at the margin, shows evidence local cost pressures are increasing, inching the central bank “closer to raising rates,” said Lee Hardman, Currency Analyst at Bank of Tokyo Mitsubishi.
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