Sterling hits 2-week high versus dollar after CPI data

LONDON: Sterling rose to a two-week high against the dollar on Tuesday after data showed annual British inflation rose unexpectedly to 2.6 percent in July from 2.4 percent the previous month.

Rising inflation may give the Bank of England less scope to ease monetary policy if prices remain sticky in the coming months.

Sterling rose to a two-week high of $1.5730 from around $1.5702 before the release.

It surpassed its 200-day moving average at $1.5721 where traders had earlier reported offers and further gains could see it target the 100-day moving average at 1.5759.

The euro fell to around 78.72 pence from 78.82 pence before the data.