Pound drops against greenback after report stating inflation slows in UK

Posted On: July 17, 2012
The English pound slipped from its highest value in two weeks against the world's reserve currency on Tuesday after economic data indicated inflation in the U.K. reduced its pace, according to Bloomberg.

Conjecture grew louder about the central bank of England preparing to deploy economy-spurring measures. Price inflation dropped to 2.4 percent in June from 2.8 percent during the month prior, according to the Office for National Statistics.

Data about inflation reveals "there is scope for the Bank of England to maintain its dovishness," head of European currency strategist Ian Stannard with Morgan Stanley in London told Bloomberg. This is likely to "keep sterling under pressure, particularly in an environment where the global growth picture is starting to deteriorate once again."

The value of the pound continued its downward drive after U.S. central bank chief Ben Bernanke did not commit to deploy economy-spurring measures.

The English monetary unit pushed to its top value in three-and-a-half years on Tuesday against the shared currency of the European Union before losing some of its value during the Bernanke testimony, according to Reuters.

Category: Industry News

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