LONDON/TOKYO—Sterling weakened on Wednesday after hotter-than-expected consumer price inflation and fears of a deeper recession bolstered expectations of a less aggressive rate hike by the Bank of England in November.
The U.S. dollar held at a 32-year peak against the yen and rose from a two-week trough against a basket of major peers, underpinned by expectations of aggressive U.S. Federal Reserve interest rate hikes.
The British pound GBP=D3 fell 0.6 percent at 0827 GMT to $1.12500 after data showing Britain’s annual consumer price inflation inched up to 10.1 percent in September, rising more than expected and returning to a 40-year high hit in July….