US dollar lower versus sterling

Sterling was 0.4 percent higher to $2.0450 versus the US dollar by midday in New York on Tuesday after having reached a new 26-year high of $2.0476 earlier in the session.

The pound was also 0.4 percent higher against the euro, to £0.6735, while it added 0.4 percent to SFr2.4587 in relation to the Swiss franc.

The gains came after new inflation figures in the UK showed that consumer price inflation was up at an annual rate of 2.4 percent in June, which prompted speculation that the Bank of England could issue another interest rate hike soon.

Meanwhile, the euro traded steady versus the US dollar at $1.3772 as investor confidence dipped in Germany, but it still added 0.4 against the yen to ¥168.50 as investors continued to sell the Japanese currency.

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