Pound Struggles as Inflation Slows

The British pound fell after data revealed a more-than-expected slowdown in British inflation in September, facilitating potential interest rate cuts by the Bank of England. The pound decreased by 0.4% against the dollar, and sterling weakened against the euro, which saw a 0.3% increase.

The British pound experienced a noticeable drop on Wednesday, following new data that indicated a significant slowdown in British inflation for September. This development is likely to ease the path for the Bank of England to consider further interest rate cuts.

The pound slipped 0.4% against the U.S. dollar to $1.3019, following a period of stability before the announcement. Sterling also saw a decline against the euro, which increased by 0.3% to 83.75 pence.

According to the latest figures, British inflation year-on-year dropped to 1.7% in September from 2.2% in August, falling below the 1.9% forecast projected in a Reuters poll.

(With inputs from agencies.)