The pound has climbed to a one-week high versus the US dollar and a 21-month high against the euro after data showed UK inflation is running at its highest rate for a decade.
Figures showing that inflation surged to 4.2pc in the year to October are stoking expectations of an interest rates rise as early as next month.
It sent sterling 0.4pc higher against the euro to €1.19. Against the dollar, it edged 0.3pc higher to $1.3480, its highest level since November 10.
I usually do these things as because, not despite. This seems to be reversed here. Higher inflation will reduce a currency value – over time at least. And interest rates are going to have to change hugely to cover that gap. Looks to me more like one of those random changes that folk are attaching a story to.