Sterling Holds Gains Amid UK Inflation Data

The British pound maintained its gains against the US dollar on Wednesday after official data revealed UK inflation rose in line with economists' forecasts. Sterling was up 0.14% at $1.3552, extending its recovery from a modest jobs report that weighed on the currency the day before.

Against the euro, however, the pound slipped slightly to 85.56 pence. Investors are assessing fresh economic data for signs of whether sterling can sustain its gains after advancing for three consecutive weeks.

Improving confidence in the UK economy has supported the currency, although rising oil prices remain a concern as hopes of an agreement between the US and Iran to end their conflict continue to fade.