Sterling held near a 7-month low against the euro on Tuesday, with inflation data offering little fresh direction for the British currency ahead of Bank of England minutes on Wednesday.
Britain's inflation rate rose for the first time in five months in February to stand at the Bank of England's target of 2.0 percent, official data showed on Tuesday.
The Office for National Statistics said consumer prices rose 0.3 percent last month, raising the annual rate a tenth of a point to 2.0 percent and hitting the bank's target level for the first time since June 2005 and meeting market forecasts.
"There was a drift lower beforehand, but most elements are in line. From a monetary policy perspective this is neutral and that's why we're seeing a limited currency impact," said Daragh Maher, senior currency strategist at Calyon.
By 1510 GMT, sterling was down slightly against the euro at 69.26 pence after holding near a 7-month low of 69.50 pence for most of the session. Sterling was down half a percent at $1.7470. Analysts said the inflation data offered little fresh perspective on the British interest rate debate.
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