The British pound dropped versus the US dollar Thursday, as the Federal Reserve policymakers said its plan to raise interest rates this year was intact.

Sterling climbed earlier as British retail sales data improved in February, escalating at its fastest pace in three months. But its advance was halted by the greenback’s rebound.

Against the dollar, the pound traded at $1.4850, down 0.2% on the day. It also ended at 73.49 British pence per euro.

The US dollar is dominating the G10 FX… although the UK data “continues to be strong, the market is putting less focus on that with the upcoming election risk,” said Michael Sneyd, FX Strategist at BNP Paribas.

The currency was also affected when the investors pushed back interest rate hike bets despite speculation inflation in the United Kingdom would remain low for a given time period.

The material has been provided by InstaForex Company –