UK Inflation Influences Pound Positively

UK Inflation Influences Pound Positively

The pound rose to its strongest level since January 2010 against the dollar as British data showed producer prices rose at a faster pace than economists predicted, strengthening the case for higher interest rates.

Short-sterling futures dropped, while U.K. government bonds declined as gains in stocks curbed demand for the relative safety of fixed income. The cost of goods at factory gates increased 0.9 percent from February, the Office for National Statistics said today, above the 0.6 percent median prediction of 16 economists in a Bloomberg survey.

Source: UK Inflation Influences Pound Positively