GBP Weakens Below 1.3500 Ahead of Key Inflation Data Release

The British Pound (GBP) weakened against the US Dollar (USD), dipping below 1.3500 in early Asian trading hours on Wednesday.

Economists predict a rise in inflation to 3.1% in August, driven by higher motor fuel prices, which could influence the UK's Consumer Price Index (CPI) data release later this week.

The Federal Reserve (Fed) is also set to announce its interest rate decision on Wednesday, with many anticipating a 25 basis point hike in response to increasing energy prices and underlying inflation.