Pound Lingers At Two-Week Low As UK Inflation Cools Further; FOMC Eyed

Published on Mar 20, 2024 14:29

UK pound is lingering around a two-week low against the dollar on Wednesday tracking a larger than expected decline in UK inflation levels. Consumer Price Index (CPI) in the United Kingdom (UK) increased 3.4% over the year in February as compared to 3.5% expected and cooling off from a 4.0% rise in January, the data released by the Office for National Statistics (ONS) showed Wednesday. Core CPI (excluding volatile food and energy items) rose 4.5% on year in February as against January�s growth of 5.1% while missing the expected 4.6% reading. Meanwhile, broad strength in dollar overseas also weighed on the GBPUSD pair. The pair is currently quoting at $1.2705, down 0.19% on the day but off yesterday�s sharp decline below $1.27 during intraday moves. All focus is now on FOMC and BoE monetary policy decision due this week. On the NSE, GBPINR futures are trading at 105.56, up 0.22% on the day.