UK Pound Extends Slide On Softer Than Expected Inflation Data; GBPINR Futures Give Up 103 Mark

Published on Sep 20, 2023 14:01

UK pound extended decline to hit near a fresh four month low on Wednesday after Britain consumer price index came in softer than expected. Consumer price index posted an annual increase of 6.7 percent in August after rising 6.8 percent in July. Inflation was expected to rise to 7.0 percent. Moreover, this was the weakest inflation since February 2022. Excluding energy, food, alcohol and tobacco, core inflation weakened to 6.2 percent from 6.9 percent in the previous month. BoE`s interest rate decision this week will be keenly watched for further guidance on guidance. Meanwhile, dollar index holding near its recent peaks of 104.82 as investors stay focused on the conclusion of a two-day Fed meeting later in the day is also adding weight on the Britain currency. GBPUSD is currently seen quoting at $1.2358, down 0.26% on the day. On the NSE, GBPINR September futures contract recorded a sharp slide in immediate reaction to UK inflation data and is currently lower by nearly half a percent at 102.87.