Sterling rose against a broadly weaker dollar on Tuesday, aided by stubborn UK inflation data which raised speculation that the Bank of England would hold off from extending quantitative easing in the near term. At 1457 GMT, sterling was trading up around 0.5 percent versus a broadly weaker dollar at $1.5505, with traders reporting demand from leveraged accounts on the break of $1.5500. Asian sovereign names were also sterling buyers on the day.
The dollar fell around 0.8 percent versus a currency basket on speculation that the Federal Reserve may announce new easing measures in the coming months. The euro rose 0.2 percent to 83.70 pence, after finding good support from buy orders in the 83.30 region. Further demand was reported at 82.90.
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