The pound fell on Tuesday (13 September), after data released by the Office for National Statistics (ONS) showed the rate of inflation in the UK missed forecast last month. The release had a negative impact on sterling, which fell sharply against both the euro and the dollar, losing 0.63% against the former to trade at €1.1793 and 0.65% against the latter, exchanging hands at $1.3248.
According to the ONS, the consumer price index (CPI) inflation grew 0.6% year-on-year in August, in line with the previous month’s advance but slightly lower than the 0.7% analysts expected.
On a monthly basis, CPI rose 0.3%, rebounding from a 0.1% decline in July but falling short of the forecast 0.4% increase.
The report added the main upward pressures on inflation were rising food prices and air fares, but these were offset by falls in hotel accommodation, and smaller rises in alcohol, and clothing and footwear prices than a year ago.
“While inflation has remained unchanged this month, the impact of currency changes works with a lag so further rises in consumer price index inflation should be expected,” said Tom Stevenson, investment director for personal investing at Fidelity International.
Elsewhere, the euro was up 0.12% against the dollar, fetching $1.1247, while the greenback rose 0.40% against the yen to ¥102.26. The dollar’s rally had petered out slightly after Federal Reserve Governor Lael Brainard on Monday argued for a cautious approach to raising rates, but the US currency regained later in the session.
“The dollar is trading a little higher again having come off a little yesterday on Brainard’s comments, which again suggests that traders are only writing off September and a hike this year remains very much on the cards, which is bullish for the greenback,” said Oanda’s senior market analyst Craig Erlam. – IBTimes
INTERNATIONAL banks are terminating working relations with their local counterparts, in a move that will affect the importation of cash and payments to foreign suppliers.
BY VICTORIA MTOMBA
In his mid-term fiscal ...
ECONET Wireless Zimbabwe’s mobile financial service platform — Ecocash has transacted over $16 billion in the last four years.
According to the group’s latest annual report, the mobile money platform’s subscriber ...
Old Mutual Zimbabwe’s Central African Buildings Society (CABS) doubled its net surplus to $20.75 million from $10.63 million last year, on the back of improved loan recoveries amid restricted lending.
Janet Jackson’s been spotted with her baby bump for the first time since news broke of her pregnancy. Sure to put surrogacy rumours to rest, pictures have emerged of Jackson in comfortable, loose fitting gear […]
After a year as host of the US satirical television programme The Daily Show, the charismatic South African Trevor Noah, seems to have cemented his place on the prime-time slot. The much-loved show was hosted […]
October is set to be a busy month with a number of gigs featuring international artists lined up. First will be the Musica Festival, then the much awaited Morgan Heritage show, followed by the Zimpraise […]
The wait is finally over for many Zimbabweans, and those abroad, who were looking forward to the release of the much hyped feature film, ‘Escape’, as the intriguing masterpiece is set to premiere on Tuesday […]