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According to Reuters, sterling increased by 0.3 per cent to $1.6277 with consumer price index (CPI) data expected to rise later today.
It has been forecast to have surged from four per cent in January to 4.2 per cent in February - and the news provider noted if this is the case it would up the chances of an interest rate hike.
Raghav Subbarao, currency strategist at Barclays Capital, stated today's CPI data may result in benefits for the pound.
Sterling also gained against the euro yesterday afternoon by 0.2 per cent at 87.16 pence.
This comes after it hovered near a fourth-month low versus the euro last Thursday as the single currency was up around 87.14 pence, partly due to Spain drawing solid demand at a bond auction and further speculation the eurozone interest rate could be set to rise soon.
Posted by Greg Secker
