The Pound has fallen this morning, most notably against the US Dollar, as UK Consumer Price Index data confirms UK inflation slowed to the least in five years last month at 1.2%, adding pressure on the Bank of England to keep interest rates at record lows for longer. Lower UK interest rates make the Pound less attractive to international investors seeking higher yield. The perception earlier this year that the Bank of England may raise rates in early 2015 had helped the Pound to appreciate to a high of 1.7191 in July against the US Dollar and 1.2875 against the Euro as recently as 1st October. As the market increasingly begins to price out imminent Bank of England rate rises the Pound trades today as low as 1.5948 against the US Dollar and as low as 1.2570 against the Euro.
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