Pound falls but on track towards third weekly gains ‎

The pound fell slightly today, Friday, but it is still on track to record its third consecutive weekly increase against the US dollar.

According to Reuters, analysts expect sterling to remain fragile as central banks, including the Bank of England, continue to tighten monetary policy even despite the recession, which is expected to be deeper in Britain than in the United States.

Expectations of interest rate hikes, which usually boost the value of any currency, could hurt sterling as they undermine the country’s economic outlook.

‏On Friday, the Office for National Statistics revised producer price inflation data, meaning that factory-gate inflation this year was higher than previously expected.

By 0958 GMT, sterling fell 0.3 percent against the dollar, to $ 1.2076, and reached $ 1.2153, its highest level since August 12, on Thursday.

The pound fell 0.1 percent against the euro, to 86.01 pence, on its way to its third consecutive weekly rise against the dollar and the euro.