Pound gains versus euro on inflation report

The pound gained on the euro after the Bank of England said that inflation in the UK will likely exceed 3 percent despite slowing growth and after new jobless claims there dropped twice as much as expected.

It took 74.26p to buy a euro in midday trade in New York, while it took $1.9612 to buy a pound.

The US dollar also gained on the euro, trading at $1.4565 to the shared currency.

The yen declined against most major currencies on Wednesday after new data showed that US retail sales gained 0.3 percent in January, cutting worries of a US recession and increasing investor appetite for risky carry trades.

At nearly noon in New York, the yen traded at ¥108.2100 to the US dollar, at ¥157.6077 to the euro, and at ¥212.2268 to the pound.

The return to carry trades also hurt the Swiss franc versus the euro and the pound, with the franc trading at SFr1.6131 to the euro and at SFr2.1722 to the pound.

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