The British pound declined Tuesday as figures showed UK inflation dropped back to zero in August.
According to the Office for National Statistics, the inflation rate fell to 0% last month from 0.1% in July, primarily driven by lower petrol prices and smaller seasonal increase in clothing prices last year.
Sterling stood at 73.40 pence per euro. Against the US dollar, the pound finished at $1.5350.
Rock-bottom inflation is the main argument against a push to increase interest rates, where markets have blown hot and cold for the last two years, despite higher jobs and wages data.
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