Pound Tumbles Under $1.30 In Reaction To Moderating UK Inflation Numbers; GBPINR Gives Up 107 Mark

Published on Jul 19, 2023 11:55

UK pound slumped sharply during mid-Asian session on Wednesday after inflation figures printed lower than expected, depressing the local currency. Meanwhile, an uptick in dollar index is also keeping pound under pressure. The dollar index that measures the greenback against a basket of currencies fell to April 2022 lows below 100 mark last week and is currently quoting at 99.73, up 0.1% on the day. Next week`s FOMC statement is expected to throw further clarity on the onward Federal stance. GBPUSD gave up $1.30 levels seen early this day and is currently down more than half a percent at $1.2967, on the day. Consumer price inflation in the United Kingdom dropped to 7.9 percent in June, marking the lowest level in nearly 15-months. Core inflation, which excludes volatile items such as energy, food, alcohol, and tobacco, eased to 6.9 percent from May`s 31-year high of 7.1 percent. On a monthly basis, consumer prices rose by 0.1 percent in June. However, the reaction to CPI data could be short lived as the inflation levels continue to stay well above the Bank of England`s 2.0 percent target. On the NSE, GBPINR futures gave up 107 mark and are currently quoting at 106.30, down more than 1% on the day.