Sterling falls, UK gilts rise after inflation data

LONDON: Sterling fell and gilts rose on Wednesday after Britain's April inflation rate undershot expectations.

Sterling fell to $1.5184 from $1.5212 as the data was perceived by traders as giving incoming Bank of England chief Mark Carney more room to ease monetary policy later in the year. The euro rose to 84.675 from 84.58 pence.

British June government bond futures extended gains by almost 20 ticks to hit a session high of 117.79 after the data, and at 0832 GMT were trading 9 ticks up on the day at 117.69.