Pound Rises On Inflation Figures

The inflation figures out this morning came in higher than expected showing inflation is easing less than forecast.

Consumer price inflation fell to 3.4 percent from 3.6 percent in January, the lowest level in more than a year but still above the consensus forecast for a drop to 3.3 percent.

The main focus for the pound now is the annual UK budget, as well as Bank of England minutes tomorrow. Some analysts say sterling could get a boost if George Osborne announces measures to support growth. The budget is expected to show government borrowing next year falling below £100 billion for the first time since 2008/9, while the growth outlook for 2012 could be nudged higher.

Check back for the latest exchange rate news as the week develops.