Sterling received a slight boost after data showed the UK’s inflation rate remained steady at 2.3 per cent, with the currency rising as much as a quarter of a per cent against the dollar.

At publication time the pound was up 0.15 per cent for the day at $1.2428, having been flat before the data were released. The buck is weaker against most major currencies this morning, but the pound was also up 0.1 per cent against the euro, at €1.1718.

Signs of rising inflation have boosted the pound, as investors hope it may encourage the Bank of England to raise interest rates sooner.

March’s 2.3 per cent reading was in line with the analyst consensus, but predictions were more uncertain than usual this month, in part due to the difficulty of predicting the impact of a later Easter.

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